The stated, long-term aim of the European Commission is to develop a harmonised, holistic regulatory framework for financial markets that covers all EU member states.This framework includes a raft of synergic regulatory regimes, which are at various stages of development, that will function collaboratively to foster an environment that is less prone to systemic risk and market abuse. This includes areas of overlap between different regulations that are still being ironed out through well-prescribed EC governance processes.
As this process is worked through, an understanding of the differentiation of regulatory obligations by market participants is needed such that they can ascertain which regulatory compliance initiatives can be leveraged to develop regulatory compliance requirements mandated by others.
One such overlap is the trade reporting obligation mandated by EMIR and the transaction reporting obligation required by MiFID II and by MiFIR, and this overlap can be leveraged by firms obligated to undertake both. To do so, the very substantial differences, as well as similarities, between the two regulations must be thoroughly understood.
