MiFID II For Non-EU Investment Banks And Brokers

The revised EU Markets in Financial Instruments package—known as MiFID II—takes effect on January 3, 2018. Some aspects of this legislation are extra-territorial. New rules on inducements, the unbundling of research, legal entity identifiers and the regulation of algorithmic trading are some of the areas where a non-EU investment bank or non-EU broker may find that it is impacted, directly or indirectly. Non-EU investment banks and brokers should consider how these new requirements will affect how they do business in the EU or with EU counterparties from the start of next year.

INTRODUCTION

The MiFID II package comprises a revised Markets in Financial Instruments Directive II,¹ the new Markets in Financial Instruments Regulation² and supplementary secondary legislation and guidance. These will replace the existing directive and its implementing legislation ("MiFID I")³ from January 3, 2018 (the effective date for the new rules).