The world of financial instruments just got more complex. Time to take note. (EY)

January 2013

KEYWORDS: MiFID, MiFID II, transparency, OTC derivatives, infrastructure, alternative investment, banks, asset managers, insurance


Ernst & Young

  • Ernst & Young

Markets in Financial Instruments Directives (MiFID II) represents one of the centerpieces of the upcoming financial markets reform and it is far from an incremental change. Since the publication of the first draft in October 2011, well over 2,000 amendments have been submitted. MiFID II will dramatically change almost the entire marketplace as we know it today, with far-reaching impacts on everyone engaged in the dealing and the processing of financial instruments. As MiFID II currently stands, we expect no business or operating model — especially in the over-the-counter (OTC) space — to remain untouched. In particular, MiFID II will not only completely change the way almost all OTC products are priced, traded and reported, but it will also bring further changes to the exchange traded equity market. This will lead to a raft of implications for investment banks, private banks, asset managers, retail banks, insurance firms, market infrastructure providers and non-financial firms such as energy providers — in short: everyone!

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