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INVESTMENT BUSINESS

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.

OVERVIEW

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

30 June 2016 Presentation slides: MiFID II consultation stakeholder briefing
26 April 2016 JFSC consults on whether Jersey should introduce an EU equivalent MiFID II regime
30 April 2015 Presentation slides: MiFID2 Investment Business Stakeholder Briefing and Discussion
Hand out: MiFID2 Investment Business Stakeholder Briefing and Discussion

CONSULTATIONS 2016

14 December 2016 Feedback on Consultation No.3 2016
25 April 2016 Consultation Paper No.3 2016: MiFID II - a consultation on whether to introduce an EU equivalent regime in Jersey
Consultation Paper No.3 2016: Response Template

EUROPEAN LEGISLATION

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.

MiFID I MiFID II
Directive
Markets in Financial Instruments Directive (2004/39/EU)
Directive (MiFID)
Markets in Financial Instruments Directive (2014/65/EU)
Regulation (MiFIR)
Markets in Financial Instruments Regulation ((EU) No.600/2014)

The relevant European legislation can be accessed from the European Commission website (Banking and Finance) using the links below:

Text of the amending Regulation and Directive delaying the implementation of MiFID II, and other changes 30.6.2016
MiFIR Commission Delegated Regulation 18.5.2016
MiFID Commission Delegated Regulation 25.4.2016
Letter to ESMA requesting amendments to RTS 2 (non-equity transparency)
Letter to ESMA requesting amendments to RTS 20 (ancillary activities)
Letter to ESMA requesting amendments to RTS 21 (position limits)
MiFID Commission Delegated Directive 7.4.2016
MiFID II proposed 1 year delay (European Commission press release)
MiFID II - Updated rules (European Commission home page for MiFID II)
MiFID I - Legislation in force (European Commission home page for MiFID I)
EMIR (please note the legislation is towards the end of the legislative acts section)

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:

ESMA and MiFID II
ESMA and EMIR

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:

UK FCA – MiFID II
UK FCA - EMIR

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