Interesting commentary from The FT relating to the tribulations of a year in the life of Mifid II and the uncertainty and lethargy it has wrought upon Financial Markets as we enter the year of Brexit. Does 2019 provide opportunity for the UK, Regulators and Business Leaders to review and impart the changes that many agree needs to happen to ensure that the much needed fluidity for the City of London is not threatened further...?
A year ago, I was optimistic about the potential of the European Union’s second Markets in Financial Instruments Directive, which brought sweeping regulatory reform to financial markets in the EU. January marks its first anniversary, and it’s already clear the regulation has not worked. Mifid’s original objectives were commendable and scored a few wins in limiting dark pool trading through double volume caps. Despite this, it opened a Pandora’s box of unintended problems for market participants.