Update On MiFID II And MiFIR

ESMA, the European Securities and Markets Authority issued consultation documents for the implementation of the revised Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) on 22nd May 2014. This is the first stage in the process of translating the MiFID II/MiFIR requirements into practically applicable rules and regulations to address the effects of the financial crisis and to improve financial market transparency and strengthen investor protection.

MiFID II/MiFIR introduce changes that will largely impact the EU's financial markets, including transparency requirements for a broader range of asset classes; the obligation to trade derivatives on-exchange; requirements on algorithmic and high-frequency-trading and new supervisory tools for commodity derivatives. It is envisaged that it will also strengthen protection for retail investors through limits on the use of commissions; conditions for the provision of independent investment advice;