The second Markets in Financial Instruments Directive (MiFID II), together with the Markets in Financial Instruments Regulation, will form one of the central pillars of the regulatory regime governing the manner in which investment firms offer products and services to investors as well as prescribing the rules, systems and controls surrounding the operation of trading venues and their use.
Amongst other provisions, the law recasts and significantly extends the rules on:
- Investor protection
- Pre- and post-trade transparency
- Trading facilities
- Transaction reporting
- Electronic trading
- Arrangements for the payment for Research
Full details can be found on the ESMA website
The new legal framework applies from 3 January 2017, by which time each Member State of the European Union must have transposed MiFID II into its national legislation.
As the MiFID II rule-making process continues, more information will be published to this page or its sub-headings on the left-hand menu.
Day 1 Checklist
MiFID II will require certain operational requirements to be in place from the first day that the legislation comes into force (January 3, 2017) depending on the type of firm and activity.
Below is a non-inclusive list of requirements that may need to be considered:
This list will be added to as legislative requirements become finalised.