The EU is poised to delay the release date of an ambitious regulation that will overhaul financial market rules, the Financial Times said.

On Tuesday, the European Commission said it is considering delaying the planned January 3, 2017 start date of its MiFID II legislation by a year. The legislation is seen as one of the most thorough responses to the financial crisis of 2008 and the EU has often regarded it as an “ambitious” regulation. MiFID II is expected to repair derivatives trading and monitor financial advisor activities.  The delay of the regulation comes amid concerns of the accompanying technologies that may not be ready in time to hit the January 2017 start date. Banks and other financial institutions may need extra time to build the right systems to comply with the new rules.

The legislation would impact almost every financial firm operating across the 28-nation bloc. Industry heavyweights like Deutsche Bank AG, Goldman Sachs, HSBC to small hedge funds will have to implement new systems.

Bloomberg reported that due to the complex nature of the legislation and the technical aspects involved, regulators and companies may need more time to adjust their business and as a result, a delay might be necessary.

The European Securities and Markets Authority said that the possibility of implementing certain areas of MiFID II in time might be a challenge. The Brussels-based commission is expected to hold talks with the European Parliament and EU member states before confirming the delay of the new rules. 

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