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ARTICLE · 29 DECEMBER 2011

European Commission Makes MiFID II Proposals

De Brauw Blackstone Westbroek
De Brauw Blackstone Westbroek
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De Brauw Blackstone Westbroek

De Brauw Blackstone Westbroek

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The European Commission has put forward proposals to revise the Markets in Financial Instruments Directive (MiFID).

NetherlandsInternational Law

The European Commission has put forward proposals to revise the Markets in Financial Instruments Directive (MiFID). The proposals consist of a directive and a regulation. The key elements are:

  • Organised Trading Facilities (OFTs) will be brought within the regulatory framework of the MiFID
  • New safeguards are introduced for algorithmic and high frequency trading ("flash trading").
  • The transparency of trading activities in equity markets will be improved; exemptions would only be allowed in certain circumstances. The new rules also introduce a transparency regime for trade in non-equities markets.
  • Supervisors will be able to ban specific products, services or practices if they jeopardise investor protection, financial stability or the orderly functioning of the markets. There will be stronger supervision of commodity derivatives markets.

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