Markets in Financial Instruments Directive (MiFID II): FAQ

Europe finally has agreed on the terms of MiFID II, extending its regulatory reach into fixed income, FX, OTC trading and blogcommodity speculation. Here are seven details you need to know as implementation begins.

We still have technical meetings to go through to finalize details, so the complete text is unlikely to be available until won or close to January 27, but here is what we understand so far:

1.  HFT will be restricted through greater testing of algorithms, but there will be no 500 m/s rule.

INDIA’s Stand under ESMA in the OTC market

I am re-posting one of my old post with the intention that many of my fellow mates wanted to know the implications of the European

Esma
Esma (Photo credit: SphotoE)

Securities and Markets Authority ESMA on India.

“The RBI and CCIL have expressed reservations and said they would be reluctant to apply for registration under Esma.”

India is “reluctant” to apply for third-country equivalence for the Clearing Corporation of India (CCIL) from the European Commission (EC), while it is also planning to mandate the central clearing of rupee foreign exchange derivatives, a scenario that could potentially force European banks to exit the most profitable part of their derivatives business in the country. Continue reading “INDIA’s Stand under ESMA in the OTC market”

The OTC Clearing and India’s stand under ESMA.

“The RBI and CCIL have expressed reservations and said they would be reluctant to apply for registration under Esma.”images

India is “reluctant” to apply for third-country equivalence for the Clearing Corporation of India (CCIL) from the European Commission (EC), while it is also planning to mandate the central clearing of rupee foreign exchange derivatives, a scenario that could potentially force European banks to exit the most profitable part of their derivatives business in the country.

On June 15, the European Securities and Markets Authority (Esma) is due to provide advice for the EC over whether India’s central counterparty (CCP) will be able to clear trades for European banks on July 15. Currently there is no framework within European Market Infrastructure Regulation (Emir) to enable clearing from non-equivalent CCPs. Continue reading “The OTC Clearing and India’s stand under ESMA.”