An update on MiFID II / MIFIR
On the 23rd of April 2014, the European Parliament adopted updated rules for MiFID II. The Directive and the Regulation are expected to enter into force in June 2014.
The new rules will be set as two pieces of legislation:
- directly applicable regulation (MiFIR) dealing inter alia with transparency and access to trading venues –
- a directive (MiFID II) governing authorisation and organisation of trading venues and investor protection.
The Directive (MiFID II) amends specific requirements regarding the provision of investment services, the scope of exemptions from the current Directive (MiFID I), requirements for investment firms on their organisation and the conduct of their business, organisational requirements for trading venues, powers available to competent authorities, sanctions and rules applicable for third party firms.
The Regulation (MiFIR) sets out requirements in relation to the disclosure of trade transparency data to the public and transaction data to competent authorities, the authorisation and ongoing obligations applicable to providers of data services, the mandatory trading of derivatives on organised venues, and specific supervisory actions regarding financial instruments and positions in derivatives.
The new rules will apply to investment firms; market operators and services providing post-trade transparency information in the EU.