MiFID Framework
CategoryFinancial Market Regulation
Markets in Financial Instruments Directive (MiFID) II is a new EU legislative framework to ensure a high degree of harmonized investor protection, and improve the functioning of financial markets — making them more competitive, efficient, resilient and transparent.
Harmonized Investor Protection
Improved Competitiveness of Financial Markets
MiFID II is a cornerstone of EU regulation of financial markets which sets out business conduct and requirements for investment firms, authorization requirements for regulated markets, regulatory reporting to avoid market abuse, trade transparency obligation for shares, and rules on the admission of financial instruments to trading.
The revised MiFID directive, along with the Markets in Financial Instruments Regulation (MiFIR), entered into force in 2014. Together with EMIR, they are an integral part of the reforms adopted at EU level in order to establish a safer, sounder, more transparent and more responsible financial system, and strengthen EU financial markets.
The European Securities and Markets Authority (ESMA), having completed the technical standards and advices as per the European Commission mandate, has contributed to the implementation of MiFID II/MiFIR by issuing clarifications and guidelines.
The new rules, reporting requirements and tests impose strict controls on investment firms and trading venues, while improving their competitiveness.
