Markets in Financial Instruments Directive (MiFID II)
Market in Financial Instruments Directive also known as MiFID II covers both directive and regulation:
the Markets in Financial Instruments Directive (2014/65/EU) (MiFID) and
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 directive and regulation set out:
the conduct of business and organisational requirements for investment firms
authorisation requirements for regulated markets
regulatory reporting to avoid market abuse
trade transparency obligations for shares
rules on the admission of financial instruments for trading.
European Markets and Infrastructure Regulation (EMIR)
European Markets and Infrastructure Regulation (EMIR) establishes organisational, conduct of business and prudential standards for trade repositories and central clearing counterparties.
The regulation aims at improving the over the counter (OTC) derivatives market and reducing risk. For that, OTC derivatives are subject to clearance through central clearing counterparties. Risk mitigation techniques will be applied to those OTC derivatives that do not succeed clearance.
All derivative transactions must be reported to trade repositories.
Here at the JFSC, we continue to enhance the Investment Business regime, aligning it to a framework equivalent to MiFID II. The latest enhancements are set out in the consultations we published in 2018:
As an independent EU authority, ESMA aims to protect investors and promotes stable and financial markets. MifID II empowers ESMA to propose regulatory technical standards and implementing technical standards.