Markets in Financial Instruments Directive (MiFID II) and
European Markets and Infrastructure Regulation (EMIR)
This section of the Commission’s website is a dedicated area for MiFID II and EMIR related matters, including links to the European Legislation, ESMA and the UK Financial Conduct Authority (FCA) dedicated MiFID II webpage.
MiFID II comprises of a Directive and a Regulation. MiFID II sets out conduct of business and organisational requirements for investment firms, authorisation requirements for regulated markets, regulatory reporting to avoid market abuse, trade transparency obligation for shares, and rules on the admission of financial instruments to trading.
EMIR introduced requirements aimed at improving the transparency of OTC derivatives markets and reducing the risks associated with those markets. In order to achieve this, EMIR requires that OTC derivatives meeting certain requirements are subject to a clearing obligation through central clearing counterparties, and where OTC derivatives are not centrally cleared that risk mitigation techniques apply. In addition, all derivatives transactions need to be reported to trade repositories. Finally, EMIR establishes organisational, conduct of business, and prudential standards for both trade repositories and central clearing counterparties.
PRESS RELEASES AND PRESENTATIONS
The MiFID II regulatory package comprises of a Directive, the Markets in Financial Instruments Directive (2014/65/EU) (MiFID) and a companion Regulation, the Markets in Financial Instruments Regulation ((EU) No. 600/2014) (MiFIR). The Regulatory package succeeds the original Markets in Financial Instruments Directive (2004/39/EU) (MiFID I). The table below clarifies the context of the regulatory instruments concerned and provides hyperlinks to the EU texts.
The relevant European legislation can be accessed from the European Commission website (Banking and Finance) using the links below:
European Securities Markets Authority (ESMA)
MiFID II empowers ESMA to propose regulatory technical standards and implementing technical standards, and EMIR requires ESMA to draft regulatory and implementing technical standards to further detail and implement its provisions.
Information regarding ESMA’s actions to date can be accessed from the links below:
Other Information Sources
The UK FCA has established dedicated MiFID II and EMIR webpages within its International Markets section, which can be accessed by the links below: