Want to know more about MiFID?
In June 2014, the European Commission adopted new rules revising the MiFID framework. These consist of a directive (MiFID II) and a regulation (MiFIR).
MiFID II
MiFID II aims to reinforce the current European rules on securities markets by:
- ensuring that organised trading takes place on regulated platforms
- introducing rules on algorithmic and high frequency trading
- improving the transparency and oversight of financial markets – including derivatives markets - and addressing some shortcomings in commodity derivatives markets
- enhancing investor protection and improving conduct of business rules as well as conditions for competition in the trading and clearing of financial instruments
Building on the rules already in place, the revised MiFID rules also strengthen the protection of investors by introducing requirements on the organisation and conduct of actors in these markets.
MiFIR
MiFIR sets out requirements on:
- disclosure of data on trading activity to the public
- disclosure of transaction data to regulators and supervisors
- mandatory trading of derivatives on organised venues
- removal of barriers between trading venues and providers of clearing services to ensure more competition
- specific supervisory actions regarding financial instruments and positions in derivatives
PRIIPS / Regulation on Costs and Charges
The PRIIPS Regulation (”Packaged Retail and Insurance-Based Investment Products”) ensures the provision of a key information document (“KID”) to retail investors (as defined in MiFID II) in order to enable them to understand and compare the key features and risks of the PRIIP prior to trading.