On 15 April 2014, the European Parliament adopted legislation that will replace the current Markets in Financial Instruments Directive (MiFID). The new legislation comprises a revised directive (MiFID II) aimed at making markets more resilient by overhauling over-the-counter (OTC) derivatives trading and curbing high-frequency trading, as well as a new regulation (MiFIR) setting out requirements for trade transparency and enhanced investor protection. Although the framework (level 1) is now agreed, much work still remains to be done in order to finalize the details of specific provisions which will undergo a further process of consultation, negotiation and publication (level 2).
This process was started today, 22 May, with the European Securities and Markets Authority (ESMA) launching the consultation process on MiFID II and MiFIR. This is the first step in the process of translating the MiFID II/MiFIR requirements into practically applicable rules and regulations to address the effects of the financial crisis. Steven Maijoor, ESMA Chair, expressed his appreciation of “the magnitude of this exercise for stakeholders” and “[strongly encourages] all those affected by these reforms to provide their views” to ensure that they are taken into account in the final proposals.
More information concerning the ESMA consultation can be found on their website:
- ESMA consults on MiFID reforms here
- Discussion Paper on MiFID II/MiFIR here
- Consultation Paper on MiFID II/MiFIR here
The closing date for responses to both papers is Friday 1 August.