MiFID II – Taking It To The Next Level

After two years of negotiations, on 14th January 2014 a high-level agreement was reached between the European Parliament, the Council and the Commission on the updated rules for markets in financial instruments which are designed to address certain shortcomings of the first Directive.

The key elements of the Directive are expected to be as follows:

1. The introduction of a market structure framework – the objective of which is to ensure trading (whenever appropriate) takes place on a regulated platform;
2. The increase in equity market transparency and the establishment of the transparency principle for non-equity instruments such as bonds and derivatives;
3. Harmonised position-limits regime for commodity derivatives with the objective to improve transparency;