Industry bodies fear MiFID II’s Asia impact

Author: Ashley Lee | Published: 19 Jan 2015

Industry associations are concerned that the European Securities Markets Authority’s (Esma) far-reaching market infrastructure reforms could have unintended consequences for Asia’s capital markets.

Nearly a month after its release on December 19, few Asian market participants have begun – let alone finished –Esma’s 1600-plus page consultation on its Markets in Financial Instruments Directive II (MiFID II).

But those that have studied the consultation have expressed concerns about its broad application across the capital markets. And it is becoming a focus in Asia; the Asia Securities Industry and Financial Markets Association (Asifma) recently introduced a MiFID II working group.

"On the most macro level, one of the challenges of MiFID II is the breadth and scope, not only for the products it’s covering, but also the market participants impacted," said Rebecca Terner Lentchner, head of policy and regulatory affairs at Asifma.

"From the Asia perspective in particular, one...