MiFID II
Markets in Financial Instruments Directive II
European regulation enhancing investor protection and market transparency in financial services.
MiFID II, effective from 2018, significantly expanded the scope and requirements of the original MiFID directive. It introduces comprehensive transaction reporting, best execution requirements, and systematic internalizer regulations. The directive mandates pre-trade and post-trade transparency for equity and non-equity instruments, requires detailed record-keeping, and restricts inducements to improve investor protection. MiFID II covers investment firms, trading venues, and data reporting services across the EU. It introduces position limits for commodity derivatives, algorithmic trading requirements, and enhanced governance standards. The regulation aims to increase market efficiency, reduce systemic risk, and ensure fair treatment of investors through standardized practices and improved transparency.
Example
Transaction reporting to trade repositories, best execution reports, research unbundling requirements