The 'MiFID II' regulations force detailed reporting of transactions
They are designed to protect customers and investors, making the financial markets more transparent. New EU rules, called ‘MiFID II,’ have been brought in – forcing banks and traders to report detailed information on trillions of euros of transactions.
“There are some pretty strong powers that can be used. The question of course will be whether regulators will use them, will be aggressive enough in cracking down on irresponsible actors on financial markets,” questioned Marc-Olivier Herman, EU Economic Justice Lead for Oxfam.
The financial industry has had to make big changes to adopt the new rules – which are late coming into force because of how complex they are.
“Banks have made many investments and efforts to comply with the new rules,” Isabelle Marchand, from the Belgian Financial Sector Federation FEBELFIN, told Euronews.
“They have made changes to their IT systems, they’ve had to train employees, had to change products, documents. So, it comes with a certain cost. But the main objective is to protect customers and to increase the investor protection. So, we support this objective.”
Regulators had to issue eleventh-hour guidance to avoid trading freezes. Commentators say they expect investors to hold off on large trades until they have a clearer idea of the impact of the reforms.