The revised Markets in Financial Instruments Directive and new Markets in Financial Instruments Regulation – collectively known as MiFID II – represented a comprehensive and profound reshaping of how EU financial markets, products and services and the relationship between financial services firms and their customers are regulated. The rules have applied since 3 January 2018.

The MiFID II reforms cover several areas including:

• Authorisation and organisational requirements
• Developments in market structures
• Investor protection and provision of investment services
• OTC derivatives and commodities
• Transparency
• Supervisory powers

MiFID II is subject to a comprehensive review which may lead to changes in many of these areas. Relevant legislative proposals are expected in 2021. In the shorter term, there have been proposals for certain “quick fixes” to the MiFID II investor protection rules and requirements related to commodity derivatives, which are expected to be finalised during 2020.