MiFID And MiFIR On Supervision Of Products - And - Circuit Breakers

Introduction

This is the fifth in our series of briefings on MiFID and MiFIR. Below, we describe new powers of product intervention granted to ESMA and local regulators under MiFIR and new obligations set out in MiFID for regulated markets to have in place measures to ensure systems' resilience, including circuit breakers and controls over algorithmic trading.

A. Product Intervention

Key Points

• a direct power to prohibit a particular investment and/or investment activity is given its first legislative expression;
• regulators are the first line of intervention;
• ESMA has the power temporarily to ban products or practices in the absence of regulatory intervention.

Legislative Provisions