No time for sentimentality

Whether it’s Windows 8, OS X 10.10 or Android 5, modern life beats to the drum of big software releases. Since any new EU regulation includes an automatic review clause, financial markets legislation is already following a similar pattern. With the ink barely dry on ESMA’s latest technical advice and consultation for MiFID II, it’s not a question of if we’ll see EMIR II or MiFID III, but when.

As regulation becomes more complex and increasingly overlapping, a proper programme management plan that deals with the interdependences between MiFID, MAD, EMIR, Short Selling, Benchmark and any other European regulation becomes more important. For example, ESMA has just closed its consultation on the interpretation of the definition of derivatives under MiFID I to make EMIR work.

In contrast to most software changes firms are not able to opt out of mandatory regulatory updates, making a robust and effective regulation review program key. While I still enjoy an occasional round of Pac-Man at home on my good old C64 breadbox running in some long-forgotten Commodore BASIC language, financial market regulation will not allow for such sentimentality.