The second Markets in Financial Instruments Directive (MiFID II), together with the Markets in Financial Instruments Regulation, has come into effect on January 3, 2018. MiFID II and MiFIR represent the biggest overhaul of the European financial markets in a decade, impacting global client trading on European venues, in European financial instruments and with European investment firms.
MiFID II and MiFIR revise and significantly extend the rules on:
- Investor protection (including requirements regarding product governance, suitability and appropriateness, cost and charges disclosure, inducements, research unbundling, recording of communications, etc.);
- market structure and transparency (including pre-trade and post-trade transparency, best execution, clearing, trade and transaction reporting); and
- trade controls (including systems and controls for algorithmic trading and commodities controls).
Full details can be found on the website of the European Securities and Markets Authority (ESMA).
The new regulations affect the entire bank and all groups of clients – commercial, private as well as institutions. Deutsche Bank’s business divisions and infrastructure functions have worked in close collaboration in order to meet all MiFID II requirements in a timely manner. The bank has trained its staff, provided timely information to its clients and has made the necessary changes to its technology.
Updated documentation has been sent to clients in the course of the fourth quarter of 2017, where required. Legal resources available on db.com have been updated to reflect MiFID II as well. Please reach out to your client advisor or relationship manager for any further questions related to MiFID II.
With effect from 1st January 2021, MiFIR and any delegated regulations made under MiFID II and MiFIR, so far as operative at that time, will form part of the domestic laws of the United Kingdom. United Kingdom laws and rules of United Kingdom regulators implementing MiFID II will continue in effect. References above to MiFIR are to MiFIR both as it forms part of European Union Law and as it will form part of the domestic laws of the United Kingdom.