What does MiFID II stand for?

What does MiFID II stand for?

Markets in Financial Instruments Directive The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union's financial markets and standardizes the regulatory disclosures required for firms operating in the European Union. ... MiFID was replaced by MiFID II in 2018.

What is MiFID II summary?

MiFID II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry, especially after the 2008 financial crisis.

What is MiFID II compliance?

Introduce. MiFID II is European Union legislation that regulates firms that provide services to clients linked to financial instruments and the venues where those instruments are traded. ... Increase the efficiency of financial markets and reduce unnecessary costs for participants.

When was MiFID II introduced?

3 January 2018 MiFID II/MiFIR entered into force on 3 January 2018. This legislative framework strengthens investor protection and improve the functioning of financial markets making them more efficient, resilient and transparent.

What is MiFID II reporting?

MiFID II Transaction Reporting requires investment firms to report complete and accurate details of their transactions to their competent authorities, no later than the close of the following working day.

Why is MiFID II important?

The main objectives of MiFID II include the pursuit of harmonised regulation across EU financial markets, increased competition between EU financial markets, ensuring appropriate levels of investor protection, and strengthening of supervisory powers.

What is a MiFID firm?

Article 4(1) MiFID II 'Investment firm' means any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis.

Who does MiFID 2 apply to?

MIFID II also applies to European providers of MiFID services in the European Economic Area (EEA)1, such as investment managers of pension funds, European firms which provide MiFID services and to a certain extent credit institutions.

What is the difference between MiFID and MiFID 2?

The main difference between MiFID and MiFIR is that the directive (MiFID) sets out the goals that EU member states should strive to meet, whereas the regulation (MiFIR) imposes rules that all countries must follow. MiFID II is a legislative act that sets out goals that all countries in the EU need to achieve.

Is MiFID II working?

One year on, MiFID II is working and firms have adapted to the burdensome new set of rules. ... Markets have adapted to the new market structure rules, electronification has increased substantially in certain segments but market liquidity remains an issue.