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A lawyer is seen in an office at a court in Seville, during an unprecedented nationwide strike of Spanish judges and magistrates February 18, 2009. Spanish judges staged an unprecedented strike on Wednesday, to call for more resources for courts they say struggle under an intolerable workload using outdated technology. At least 63 percent of Spain's roughly 3,500 serving judges joined the one-day protest, which will be followed by another stoppage in June unless their demands are met, according to the Francisco de Vitoria Legal Association, one of the groups organising the strike. REUTERS/Marcelo del Pozo (SPAIN)

Europe’s new financial regulations add up to 7,000 pages and 1.7 million paragraphs

7,000 pages

After the financial crisis, the EU started working in a new set of rules for financial markets, which went into force on Wednesday (Jan. 3). A decade in the making, they are intimidatingly long.

Published   |  Photo by Reuters/Marcelo del Pozo
A lawyer is seen in an office at a court in Seville, during an unprecedented nationwide strike of Spanish judges and magistrates February 18, 2009. Spanish judges staged an unprecedented strike on Wednesday, to call for more resources for courts they say struggle under an intolerable workload using outdated technology. At least 63 percent of Spain's roughly 3,500 serving judges joined the one-day protest, which will be followed by another stoppage in June unless their demands are met, according to the Francisco de Vitoria Legal Association, one of the groups organising the strike. REUTERS/Marcelo del Pozo (SPAIN)
7,000 pages

The regulation demands more detailed reporting on trades, limits volumes in private exchanges known as dark pools, regulates over-the-counter trading, and allows investors to move contracts between exchanges.

A lawyer is seen in an office at a court in Seville, during an unprecedented nationwide strike of Spanish judges and magistrates February 18, 2009. Spanish judges staged an unprecedented strike on Wednesday, to call for more resources for courts they say struggle under an intolerable workload using outdated technology. At least 63 percent of Spain's roughly 3,500 serving judges joined the one-day protest, which will be followed by another stoppage in June unless their demands are met, according to the Francisco de Vitoria Legal Association, one of the groups organising the strike. REUTERS/Marcelo del Pozo (SPAIN)
7,000 pages

Called Mifid II, the regulations add up to almost 7,000 pages. The Dodd-Frank act, another post-crisis attempt at regulating financial markets, was only 850 pages. Mifid II grew from 500,000 paragraphs in 2014 to 1.7 million in 2017.

A lawyer is seen in an office at a court in Seville, during an unprecedented nationwide strike of Spanish judges and magistrates February 18, 2009. Spanish judges staged an unprecedented strike on Wednesday, to call for more resources for courts they say struggle under an intolerable workload using outdated technology. At least 63 percent of Spain's roughly 3,500 serving judges joined the one-day protest, which will be followed by another stoppage in June unless their demands are met, according to the Francisco de Vitoria Legal Association, one of the groups organising the strike. REUTERS/Marcelo del Pozo (SPAIN)
7,000 pages

Translating those thousands of pages into practice is expensive. That means more business for consultancies, and higher costs for banks, funds, exchanges, and brokers.

A lawyer is seen in an office at a court in Seville, during an unprecedented nationwide strike of Spanish judges and magistrates February 18, 2009. Spanish judges staged an unprecedented strike on Wednesday, to call for more resources for courts they say struggle under an intolerable workload using outdated technology. At least 63 percent of Spain's roughly 3,500 serving judges joined the one-day protest, which will be followed by another stoppage in June unless their demands are met, according to the Francisco de Vitoria Legal Association, one of the groups organising the strike. REUTERS/Marcelo del Pozo (SPAIN)
7,000 pages

One estimate puts the initial cost at about €2.5 billion ($3 billion), then €700 million ($840 million) every year for five years. Larger banks may need to spend €40 million ($50 million) each.

A lawyer is seen in an office at a court in Seville, during an unprecedented nationwide strike of Spanish judges and magistrates February 18, 2009. Spanish judges staged an unprecedented strike on Wednesday, to call for more resources for courts they say struggle under an intolerable workload using outdated technology. At least 63 percent of Spain's roughly 3,500 serving judges joined the one-day protest, which will be followed by another stoppage in June unless their demands are met, according to the Francisco de Vitoria Legal Association, one of the groups organising the strike. REUTERS/Marcelo del Pozo (SPAIN)
7,000 pages

Firms worked for months to prepare for the roll-out. The rules are so complicated that European regulators had to give some exchanges in London and Frankfurt a bit of extra time.

A lawyer is seen in an office at a court in Seville, during an unprecedented nationwide strike of Spanish judges and magistrates February 18, 2009. Spanish judges staged an unprecedented strike on Wednesday, to call for more resources for courts they say struggle under an intolerable workload using outdated technology. At least 63 percent of Spain's roughly 3,500 serving judges joined the one-day protest, which will be followed by another stoppage in June unless their demands are met, according to the Francisco de Vitoria Legal Association, one of the groups organising the strike. REUTERS/Marcelo del Pozo (SPAIN)
7,000 pages

Despite being costly and complex, the rules have noble goals. They protect investors, make firms more transparent and accountable, and markets more competitive and resilient.

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