The Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR) and Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) will be the new EU legal framework (replacing MiFID I) governing the requirements applicable to investment firms, trading venues, data reporting service providers and third-country firms providing investment services or activities in the EU. Although the MiFIR & MiFID II regime doesn’t come into effect until 3 January 2017, there are a number of measures that are currently being taken in relation to them. We look at some of these below.
- Many elements of the MiFIR & MiFID II regime need to be further specified in delegated acts to be adopted by the European Commission and it has therefore requested the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) to provide technical input. On 19 December 2014, ESMA published final technical advice to the European Commission under MiFIR & MiFID II (ESMA/2014/1569).
- On the same date, ESMA also put out a consultation paper (ESMA/2014/1570) that consults on regulatory technical standards (RTS) and implementing technical standards (ITS) including in relation to Investor Protection and Transparency under the new regime. This Consultation is open until 2 March 2015.
- ESMA has published a list of responses to its September 2014 consultation on draft guidelines clarifying the definition of derivatives under MiFID II, which closed on 5 January 2015.
- Following the publication of the text of MiFIR & MiFID II in the Official Journal of the EU on 12 June 2014 (coming into force on 2 July 2014), Member States need to adopt and publish by 3 July 2016 the measures transposing the MiFID II Directive into national law to apply from the aforementioned 3 January 2017 deadline. MiFIR being an EU Regulation has direct effect and does not need to be transposed into law by Member States.
A number of further measures are expected by mid-2015 and will be covered in further updates to The Flaw.