MiFID II and MiFIR status - Level 1

MiFID II

MiFID II as published in the Official Journal on 12 June 2014

• Amended by Art. 71 of CSD Regulation (909/2014) of 23 July 2014 with regard to central securities depositories and securities settlement (published in Official Journal on 28 August 2014)
• Amended by Directive (EU) 2016/1034 of 23 June 2016 ((with regard to delay, own account exemption and equivalence of third-country markets) as published in the Official Journal on 30 June 2016. Entered into force 1 July 2016
• Corrigendum to MiFID II (amending the definition of "structured deposit" in Art. 4(1)(43)) as published in the Official Journal on 13 July 2016
• Corrigendum to MiFID II (amending an incorrect article reference) as published in the Official Journal on 8 October 2016
• Corrigendum to MiFID II (amends the scope of implementing technical standards by updating two cross-references with Article 39(9) (Freedom to provide investment services and activities) and Article 35(12) (Establishment of branches) as published in the Official Journal on 10 March 2017
• Council of the EU published its position at first reading on a proposed Directive on crowdfunding amending MiFID II (8 July 2020)

MiFIR

• MiFIR as published in the Official Journal on 12 June 2014

• The Investment Firms Regulation made changes to the MiFID tick size regime for SIs, which applied from 26 March 2020 (subject to regulatory forbearance due to Covid-19 until 26 June 2020 – see ESMA’s statement) and changes to the MiFIR third country equivalence regime, which applied from 26 June 2021

• Corrigendum to MiFIR (with regard to entry into force) as published in the Official Journal on 15 October 2015
• Amended by Regulation 2016/1033 of 23 June 2016 (with regard to delay and pre-transparency for securities financing transactions and package transactions) as published in the Official Journal on 30 June 2016. Entered into force 1 July 2016
• Corrigendum to MiFIR (amending the definition of "competent authority" in Art. 2(1)(18)) as published in the Official Journal on 12 July 2016
• The Investment Firms Regulation makes changes to the MiFID tick size regime for SIs, which will apply from 26 March 2020, and changes to the MiFIR third country equivalence regime, which applied from 26 June 2021
• Pursuant to the Omnibus Regulation and Omnibus Directive, from 1 Jan 2022, the MiFID II requirements relating to authorisation and supervision of data reporting services providers moved to MiFIR (from MiFID II) in order to avoid differences in implementation of these requirements across the EU, and ESMA became the direct supervisor of DRSPs
• Open access regime entered into force on 4 July 2021 – see EU notice of information and FCA statement (July 2020)

MiFID II ‘Quick Fix’

• Directive 2021/338 was published in the Official Journal on 26 February 2021 and entered into force on 27 February 2021. The Directive makes certain “quick fix” amendments to MiFID II Level 1 on information requirements, product governance and position limits to assist with market recovery following the Covid 19 pandemic. The changes need to be implemented in Member States and will apply from 28 February 2022 (although the suspension of RTS 27 best execution requirements may apply from 27 February 2021).

• Read our briefing note for more detail.
• Further publications on changes to the commodities derivatives regime are as follows:
• ESMA’s consultation paper on draft technical standards for commodities derivatives (published on 26 May 2021).
• European Commission draft Delegated Regulation on the ancillary activities tests
• Read our briefing note for more detail.

MiFID II Review

The European Commission has published legislative proposals to amend MiFID II and MiFIR. Read our briefing note for a summary of the key points.



Consultation and drafts	Report
European Commission consultation on the review of the MiFID II/MiFIR regulatory framework (February 2020)	The Commission published its proposals on 25 November 2021: MiFIR proposal [This is actually the MiFID II proposal] Consolidated tape proposal [This is the MiFIR proposal] Factsheet: 2021 CMU package - Consolidated tape Impact assessment accompanying the MiFIR proposal Summary of the impact assessment accompanying the MiFIR proposal
Economic and Monetary Affairs Committee (ECON) draft report with suggested amendments to Commission’s consultation Read our briefing note for more.

 
ESMA publications related to the MiFID II Review

Inducements and costs & charges


 

Consultation	Report
ESMA call for evidence on the inducements and costs and charges disclosure requirements (July 2019)	ESMA final report on inducements and costs & charges (31 March 2020)

 

Equity and non-equity transparency, cost of market data and trading obligations

Consultation	Report
ESMA consultation paper on the development in prices for pre- and post- trade data and on the consolidated tape for equity instruments (July 2019)	ESMA review report No. 1 on cost of market data and consolidated tape (December 2019) Further ESMA publication on costs of market data expected (possibly in the form of guidance)
ESMA consultation paper on equity transparency regime, the double volume cap and the share trading obligation (February 2020)	ESMA review report on equity transparency regime, the double volume cap and the share trading obligation (July 2020)
ESMA consultation paper on systematic internalisers’ non-equity transparency regime (February 2020)	ESMA review report on systematic internalisers’ non-equity transparency regime (July 2020)
ESMA consultation paper on non-equity transparency and the derivatives trading obligation (March 2020)	ESMA review report on non-equity transparency and the derivatives trading obligation (September 2020)
ESMA consultation paper on guidelines on obligations of market data (November 2020)	Final report and Guidelines on market data obligations (June 2021) – see our briefing note for more detail
N/A	ESMA Annual Review Report under RTS 2 (July 2020)
ESMA consultation paper on the review of RTS 1 (equity transparency) and RTS 2 (non-equity transparency) (July 2021) - see our briefing note for more detail	ESMA review report on RTS 1 - equity transparency (28 March 2022) - see our briefing note for more. ESMA review report on RTS 2 - non-equity transparency (28 March 2022) - see our briefing note for more.
N/A	ESMA statement on Brexit share trading obligation (October 2020)

Transaction reporting

Consultation	Report
ESMA consultation paper on transaction reporting and reference data (September 2020)	ESMA review report (March 2021) - see our briefing note for more detail.

OTF regime and multilateral trading 

Consultation	Report
ESMA consultation paper on the OTF regime and multilateral trading (September 2020)	ESMA review report (March 2021)

Position limits and position management

Consultation	Report
ESMA consultation paper on position limits and position management (November 2019)	ESMA review report on position limits and position management (April 2020)

Algorithmic trading

Consultation	Report
ESMA consultation paper on algorithmic trading Review Report (18 December 2020 – postponed from July 2020)	ESMA review report (September 2021) – See our briefing note for more detail.

SME Growth Markets

Consultation	Report
ESMA consultation paper on SME Growth Markets (May 2020)	ESMA review report (March 2021)

Product intervention measures

Consultation	Report
ESMA call for evidence on effects of product intervention measures regarding CFDs and binary options on market participants and clients (September 2019) ESMA statement confirms they will not renew certain product intervention measures as most Member States have their own (July 2019)	ESMA statement confirms they will not renew certain product intervention measures as most Member States have their own (July 2019)   ESMA report on product intervention requirements under MiFIR (February 2020)

Investor protection topics

Consultation	Report
ESMA call for evidence on a number of retail investor protection topics (October 2021) - Closed 2 January 2022.	ESMA points out that due to the tight deadline set by the Commission (April 2022) no further consultation will be possible.

DLT Pilot

Trading Venue