In April 2014, the final text of the revised Markets in
Financial Instruments Directive (MiFID II) was adopted. Almost four
years later—including a one-year delay—the text should
come into effect on 3 January 2018.
The aim of the first MiFID, applicable since 2007, was to
establish a harmonised regulatory framework for the provision of
investment services by banks and investment firms as well as for
the operation of regulated markets. Even though the initial MiFID
is widely recognised as achieving closer integration of the
financial markets in the European Union, shortfalls in investor
protection (including prevention of conflicts of interest) and
market transparency remain.
According to the European Commission, MiFID II aims to address
these limitations by (i) making financial markets in the European
Union more robust and transparent and (ii) creating a new legal
framework that both better regulates trading activities on
financial markets and enhances investor
