Abstract:

The financial market regulation tries to anticipate possible risks and problems in the future by using an adequate control. The aim is to avoid turbulences and crises. In the emerging markets the problems are even more difficult because the low volume and liquidity of markets undermine the robustness. The new market products, the propensity for higher returns could change the picture of risk- return-liquidity and after a bullish run of the global markets, the volatility (both of markets and the macroeconomic events) could change the investor sentiments. The regulative framework evaluate with a different dynamics and all the actors in financial markets should participate.
The MIFID 2 regulative framework is a very complex one and implementing challenges for emerging markets are even more difficult to understand. There are new business, new products, new strategies to control risk. For Romania the transition from the border market status toward the emerging market one is very important both for the capital market and for the real economy.

This proposal is related to the design process of innovative strategies to adapt and implement MIFID 2 in Romanian capital market. In this debate the role of collaborative projects between government and academia or even the more complex Triple Helix (government- academia- financial institutions) partnerships could offer interesting synergies.

A first proposal is based on the idea of a set of collaborative projects between academia and government to disseminate emerging aspects of the implementation of MIFID 2.

The main objectives are the following:
1. Financial Market Regulation and the Financial Crisis
1.1 The European MIFID - 2 Framework
1.2 The Educational Framework
1.3 The Investable Environment and its Risk Attributes (the developed investable environment and particularities of border/ emerging markets)
2. Case Study: MIFID regulation implementation challenges- the case of Romanian alternative investment funds
2.1 The Risk assessment process
2.2 Implementing MIFID regulation’s challenges
2.3 Results and feed back

We hope that this type of projects could contribute to the financial culture in Romania and could also stimulate the academia and research to participate further in the MIFID 2 implementation process.

Keywords:

MIFID 2 regulative framework, emerging markets, collaborative projects, alternative investment fund AIF.