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 2018, 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.