On 8 December 2010, the EU Commission had launched its proposals to reform the Markets in Financial Instruments Directive (MiFID) and reshape the financial markets and the relationship between financial institutions and their customers. The final text of the Markets in Financial Instruments Directive ("MiFID II") will now not be published until October 2011, three months later than expected.
MiFID II is an ambitious piece of financial reform which aims to fix some of the gaps in the original MiFID and reduce systemic risk. The review focuses on the scrutiny of new trading technology and strategies, market structure issues, pre- and post-trade transparency, commodity derivative markets, transaction reporting, investor protection, regulatory framework convergence and reinforcement of supervisory powers in key areas.
MiFID II seeks to extend the scope of the Directive to include all financial products, including but not inclusive of OTC equities and derivatives, exchange-traded derivatives and fixed income products. The inclusion of non-equity assets into MiFID seeks to enhance transparency in non-equity markets.
The original MiFID has contributed to a more competitive and integrated EU financial market, however, rapid technological advances and the increasing diversity in financial instruments and methods of trading have called for the need of an extensive review. The revision of the MiFID is aimed to push towards a stronger regulatory framework with enhanced market transparency and investor protection which is well adapted to the new trends and players on financial markets.
On 8 December 2010, the EU Commission had launched its proposals to reform the Markets in Financial Instruments Directive (MiFID) and reshape the financial markets and the relationship between financial institutions and their customers. The final text of the Markets in Financial Instruments Directive ("MiFID II") will now not be published until October 2011, three months later than expected.
MiFID II is an ambitious piece of financial reform which aims to fix some of the gaps in the original MiFID and reduce systemic risk. The review focuses on the scrutiny of new trading technology and strategies, market structure issues, pre- and post-trade transparency, commodity derivative markets, transaction reporting, investor protection, regulatory framework convergence and reinforcement of supervisory powers in key areas.
MiFID II seeks to extend the scope of the Directive to include all financial products, including but not inclusive of OTC equities and derivatives, exchange-traded derivatives and fixed income products. The inclusion of non-equity assets into MiFID seeks to enhance transparency in non-equity markets.
The original MiFID has contributed to a more competitive and integrated EU financial market, however, rapid technological advances and the increasing diversity in financial instruments and methods of trading have called for the need of an extensive review. The revision of the MiFID is aimed to push towards a stronger regulatory framework with enhanced market transparency and investor protection which is well adapted to the new trends and players on financial markets.