MiFID II quick fixes

In its consultation for changing RTS 1, published yesterday, ESMA suggests that the tick size regime should also be extended to Systematic Internalisers. I don’t want to discuss whether it is a sensible proposal. Nor do I want to debate whether ESMA can use a Level 2 text to override the explicit statement in MiFID II (Article 18 and 39). MiFID II was always a carefully balanced political compromise across many different stakeholders and changing any detail risked upsetting that balance. The industry needs regulatory certainty to justify the massive investment it takes to upgrade all of its systems, and yet here we are with the second last minute consultation on the SI regime.

If this is the first sign of the snagging list from the regulation builders perhaps I should hurry up and get my wish list of MiFID II ‘quick fixes’ in the mail. If the SI regime can be changed, then why not re-open the discussion on DEA, dark pools, research, etc?