MiFID II / EU Regulation


MiFID


This was my second bite of the cherry of market structure reform (the first being ADX in Australia).

Chi-X Europe

LONDON – 7 April 2008 – Chi-X® Europe Limited today marked the passage of its inaugural year as the first and only live, pan-European equity Multilateral Trading Facility (MTF). Since officially launching on 30 March 2007 by trading, clearing and settling the component stocks of the AEX25 (Dutch) and DAX 30 (German) indices with the help of Fortis’ European Multilateral Clearing Facility (EMCF), ChiX Europe has added the FTSE 100 (British), CAC 40 (French), SMI 20 (Swiss) and OMX Stockholm 30 (Swedish) indices, which represent Europe’s most significant markets by volume and turnover.
https://cdn.cboe.com/resources/chi-x_press_releases/First-Year-Anniversary.pdf

Much of MiFID remains onshored in the UK.

MiFID RTS's

My go to table for MiFID RTSs (Regulatory Technical Standards).
There was a huge amount of work that went into these RTSs. These have survived the test of time and remain a great reference point - both in the region for domestic market practice and internationally for best practice.
https://ec.europa.eu/finance/securities/docs/isd/mifid/its-rts-overview-table_en.pdf 

Authorisation.

RTS7: 
Specifying organisational requirements of facilities trading venues allowances and derivatives

https://ec.europa.eu/finance/securities/docs/isd/mifid/rts/160714-rts-7_en.pdf

The other useful core document that I feel people fail to pay attention to is:
Reg Org : 
Commission Delegated Regulation (EU) 2017/565, as regards organisational requirements and operating conditions for investment firms.
https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017R0565

As for walking through MiFID.
I can not recommend the Interactive Rulebook highly enough.
https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook

Post Brexit, FCA has had a review of MiFID Org and its onshoring.
Policy Statement PS25/13: The MiFID Organisational Regulation
https://www.fca.org.uk/publication/policy/ps25-13.pdf



MiFID / MiFID II


MiFID II/MiFIR introduces changes that will have a large impact on the EU’s financial markets, these include transparency requirements for a broader range of asset classes; the obligation to trade derivatives on-exchange; requirements on algorithmic and high-frequency-trading and new supervisory tools for commodity derivatives. It will also strengthen protection for retail investors through limits on the use of commissions; conditions for the provision of independent investment advice; stricter organisational requirements for product design and distribution; product intervention powers; and the disclosure of costs and charges.



Markets in Financial Instruments Directive (MiFID) II

Timeframe


TimeActivities
May to August 2014Public consultation on Discussion Paper (RTS and ITS)   
May to August 2014Public consultation on Consultation Paper (Technical Advice for Delegated Acts)
7/8 July 2014
Open hearings in Paris
December 2014 to 
March 2015  
Public consultation on Consultation Paper (RTS and ITS)
December 2014Final Technical Advice for Delegated Acts submitted to the European Commission
December 2014 Final RTS on Capital Requirements Regulation (CRR)
February 2015Additional public consultation covering certain derivative classes for non-equity transparency purposes
19 February 2015Open Hearing on Secondary Markets and Investor Protection
Late spring/ early summerPublic consultation covering ITS and ESMA Guidelines mandated in MiFID II
June 2015
Final RTS submitted to the European Commission
September 2015Final RTS submitted to the European Commission
December 2015Final ITS and Guidelines submitted to the European Commission
January 2017MiFID II applies in practice

http://www.esma.europa.eu/page/Markets-Financial-Instruments-Directive-MiFID-II
(Note - this link now dead / overcome by events)





...as ever, context is the key. How MiFID II / MiFIR impacts you depends on your scope of business.
Sound ethics and a clear conscience are not enough. You need to be seen to be complying with all the various data requirements too.




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