Mifid II’s extraterritorial reach worries Asian market

Author: Brian Yap | Published: 12 Apr 2017

Asian corporates and banks have less than nine months to prepare for the new regime introduced by the Markets in Financial Instruments Directive (Mifid) II, which is slated to take effect on January 3 2018. But counsel have voiced clients’ worries on the new framework's extraterritorial nature particularly in areas such as the trading of derivatives and commodities positions.

"It is too early to say what the exact impact of the new rules on liquidity will be, but there are clearly worries around liquidity for dual-listed securities," said Owen Lysak, senior associate at Clifford Chance in London. He added that such concerns are growing particularly as EU firms continue to work through how the new trading obligations work in practice and what it will mean for their booking models.

Mifid II was initially due to come into force in January 2017 but there was widespread hope for a delay to...