MifiD II: no New Year champagne

Mifid II legislation has stumbled in the trialogue process, as EU lawmakers failed to reach agreement before the year end. The EC, the Parliament and the Council have to agree on a definitive  text- disagreement largely centred on proposals for caps on speculative commodity trading. The Commission advocates “extensive regulatory powers” for ESMA in this respect- the Parliament was unable to accede to the extension. Other unresolved issues included the “retail passport” for third-country investment firms, a well-chewed bone of contention between Gemany and the UK. The next trialogue will take place on 14^th January 2014, under a new Council President- a factor unlikely to hurry proceedings along.  While there remains broad agreement on the MifiD II framework, in legislation with financial consequence, all details are substantive. The New Year may see a few revised Mifid II timelines.