The second Markets in Financial Instruments Directive and the Markets in Financial Instruments Regulation (MiFIR), commonly referred to together as MiFID II, came into effect on January 3, 2018.
MiFID II regulates both firms that provide investment services linked to financial instruments and the venues where those instruments are traded. It builds on the original Directive by requiring greater transparency and more robust protection for market participants.
MiFID II impacts the financial marketplace in a number of ways. It:
- reshapes the trading landscape in the EU by requiring over-the-counter (OTC) broking to move into regulated trading venues
- provides a new form of trading venue, the organised trading facility (OTF), which is suited to voice and hybrid broking models
- requires a step change in the amount of information that is being captured about market activity or shown to the market on a pre and post-trade basis.
The regulations bought in under MiFID II mean that the vast majority of broking business undertaken by interdealer brokers within the EU will need to move to a trading venue. With our eleven trading venues split across our core businesses, we are ready for this new landscape; and, with the tools and information available from TP ICAP, you can be too.