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Spain: Mifid II update

Like other European countries, Spain has not fully developed the regulation to implement the Markets in Financial Instruments Directive (Mifid) by January 3 2018.

As of the writing of this article, the Spanish government has only released a preliminary version of the implementation regulation dated August 4, so there is a certain degree of uncertainty about the actual wording that is going to be officially agreed.

Using an unusual procedure to release regulation drafts, in early December, the ministry published a press release stating that the bill implementing Mifid had been submitted to the Council of State before starting the parliamentiary approval process. However, the content of the bill was not published, except for certain guidelines included in the press release about relevant sections, in particular those related to inducements and the scope of the definition of wide range of products issued by third parties.

To prevent any negative impact on Spanish trading venues as a result of a delayed implementation of Mifid II, the government approved a Royal Law Decree partially implementing Mifid solely in relation to regulated markets, multilateral trading facilities (MTFs) and organised trading facilities (OTFs), on the very last business day of the year.

Last but not least, on January 2, the Spanish National Securities Market Commission (CNMV) issued a communication on the application of Mifid II. This communication underlined that, aside from the entry into force of the Royal Law Decree, certain sections of the Mifid II package were governed by directly applicable EU regulations and made a general reference to the direct effect of the directives to encourage the Spanish industry to implement measures to apply Mifid II from January 3.

It is difficult to predict when Mifid will be finally implemented as it's only the first stage of the approval process that will end up in Parliament, but summer or early fall seems likely.

Jorge Canta

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