EU regulation continues to wind its way through the system. That’s keeping Simon Puleston Jones a busy man.

As chief executive of FIA Europe, he’s busy making his way through the EU’s 845-page consultation document that contains 860-plus questions, as part of a 10-week consultation process that ends on August 1.

John Lothian News spoke with him about what’s in it and what it means for the industry.

“That’s a hell of a lot of reading for the industry to do,” he said. “Part of the challenge for us is working out how we can get the feedback from the industry, package that up and put a nice bow around it and give it to regulators in a way that they are going to be able to understand in the time that is available.”

Puleston Jones said that one of the biggest challenges his organization faces is getting data and evidence about the pros and cons of regulatory proposals. To try and streamline and clarify issues, FIA Europe has joined with other trade groups to form the Joint Trade Association Group, to coordinate how best to respond to the 845 page document. FIA Europe has taken the lead on four topics in the document: commodities, transaction reporting, open access and derivatives.

Other areas such as pre- and post-trade transparency, investor protection, market infrastructure, algo and high frequency trading, are being tackled by other groups.

This is the heavy lifting stage of the regulatory process with more steps to follow. Draft technical standards will be released in Q4, with further technical standards in Q2 2015. More tweaks will occur next year, Puleston Jones said, but the regulations will not be implemented until December 2016.

“The biggest thing from an end-user perspective is…How have my terms of business that I’ve been presented with by the clearing broker I am using changing? And how are they being updated to reflect not only MiFID II but EMIR historically?”

He said his biggest concern is sorting out indirect clearing regulations, which may affect firms who have a mandate to clear trades outside of traditional clearing member firm procedures. This is particularly tricky because of individual bankruptcy rules that exist in each EU member state.

“Even if we get there with a standard documentation suite, there are challenges within the laws of the national jurisdictions that make up the 28 member states in Europe,” he said.

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