HM Treasury has set out its plans for changes to the assimilated MiFID regime, to make changes to the wholesale markets framework. Its immediate plans are:
- to ensure the FCA has the necessary tools to oversee off-exchange trading of commodity derivatives;
- to start the process of revoking some of the assimilated requirements in legislation that govern investment firm organisation and operation – essentially revoking the MiFID Org Reg so that the obligations in it can be replaced in the FCA Handbook; and
- to streamline the transaction reporting process by revoking firm-facing requirements in MiFIR on transaction reporting, and to delegate to the FCA the setting up of a new regime.
The FCA has also published a discussion paper on improving the UK transaction reporting regime. It says the regime is working well but it sees that some improvements could make it better. It implemented the regime in 2018 and sees the benefits of it staying close to the MiFID regime, not least since firms spent significant time and expense complying with it in the first place, and it says it is not seeking change for the sake of change. It proposes some simple and some complex changes. Its proposals focus on:
- improving the usefulness of transaction reporting data through better data quality; and
- ensuring the requirements are proportionate for firms.
The paper explores many options, and seeks views both generally and in relation to specific ideas. The FCA encourages firms to contribute to the discussion. Once it has finalised its proposals and rules, Treasury will revoke the MiFID 2 provisions.
The paper is open for comment until 14 February 2025.