The European Commission has asked capital markets watchdog Esma to reconsider some of the more contentious aspects of its planned reforms of MiFID II, raising the prospect of further delays in implementing the new rulebook.
The European Commission confirmed in February a one-year delay to the introduction of new trading rules for capital markets firms under the MiFID II regime to 3 January 2018, citing the "exceptional technical implementation challenges" faced by regulators and market participants.
Now it has asked the European Securities and Markets Authority to rethink its plans for bringing more transparency to bond markets, fearful of the potential impact on market quality and liquidity. It has also called for the imposition of tighter limits on market share in certain commodities in a bid to curb food speculation, and the exemption of some commodities trading activities from the more austere regime.
Opponents to the changes have warned of the potential for harming economic recovery in the bloc in a rush to bring more transparency to bond market trading.
MEPs have pushed Esma to draw up new proposals, but maintain that the January 2018 deadline must not be over-run.