The UK Financial Conduct Authority (FCA) is currently reminding firms that require an initial authorisation or a Variation of Permissions (VoP) under MiFID2 that the relevant applications should be submitted ASAP. The FCA notes that it has a statutory obligation to determine complete applications within 6 months. However, its previous experience is that a large majority of firms’ applications are incomplete. The FCA, therefore, is encouraging firms to submit their applications now so that any corrections can be made and a fully complete application received by 3 July 2017 - enabling an authorisation to be granted by the 3 January 2018 effective date of MiFID2. More details on the MiFID II authorisation / VoP process are provided here.

It is also relevant whether your firm will need to on-board with the FCA’s Market Data Processor (MDP), the IT system commissioned by the FCA to receive, ingest or transfer market data in fulfilment of the obligations set out in MiFID 2, MiFIR and MAR. There are different types of data which need to be submitted including: transaction reports; position reports in commodity derivatives and emission allowances; instrument reference data; and transparency data. The first steps for getting ready are: (1) to sign a confidentiality agreement to obtain the Market Interface Specification (MIS) from the FCA (see website here.); (2) to complete an MDP on-line application form; and (3) to await an FCA detailed test pack. Firms will be able to connect to the MDP for the first time on 3 July to start testing in an internal testing environment. Currently unauthorised firms will have to submit their MiFID2 applications to the FCA before those for the MDP. Further FCA information is available here. If you have any other questions or comments, please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch.