SEC issues long awaited no-action letter on Mifid II

Author: John Crabb | Published: 27 Oct 2017
The US Securities and Exchange Commission (SEC) granted temporary relief on October 26 to US market participants who will be directly affected by the research requirements of the European Union’s revised Markets in Financial Instruments Directive (Mifid II) when it comes into effect on January 3 2018.

Well received, the three no-action letters provided much needed clarity on how the European stipulations on the unbundling of research and execution costs would affect US brokers and firms who operate within the EU while complying with US securities laws.

The letters follow multiple calls from within the industry stateside to provide relief as the deadline looms ever closer. Some market participants however suggest that the relief is somewhat vague and could have gone significantly further.

"It is an important step to addressing concerns about how the regulatory regimes in the US and Europe would work together, as Europe engages in this...


 

 

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