An update for firms located outside the European Union of the possible extra-territorial impact of certain provisions in the recast Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (together referred to as “MiFID2”).
The focus is on the issues that are most likely to have an impact on non-EU firms, including buy/sell side financial institutions and private banks.
That the impact of MiFID2 will be felt far beyond the EU, particularly in relation to product governance, inducements and dealing commission, trading obligations, position limits for commodity derivatives and the new regime for accessing EU markets.
Non-EU firms need to assess their interaction with EU clients, counterparties and markets to identify the likely impact of MiFID2. Relevant interaction could include: manufacturing and distribution of financial instruments; the provision of investment research and dealing services to EU clients and trading in instruments which are admitted to trading on EU markets.
This article will be of interest to “third-country” firms, located outside the EU, but with a European connection, either in terms of European counterparties, investors or accessing European markets.
Crown, S., Gatti, S.F., Feldman, M. and Landless, P. (2017), "MIFID2 – the impact on non-EU fIRMS", Journal of Investment Compliance, Vol. 18 No. 3, pp. 67-71. https://doi.org/10.1108/JOIC-06-2017-0039Download as .RIS
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Copyright © Clifford Chance 2017.