The revised Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (MIFID II/MIFIR) were critical elements of the European Union’s (EU) effort to address shortcomings exposed by the financial crisis. Among other things, the framework was aimed at incentivizing the trading of standardized over-the-counter derivatives on exchanges and electronic trading platforms where appropriate, in order to improve transparency and ensure a level playing field between existing trading execution techniques.
These objectives have not entirely been met, and adjustments are required to make rules on data and reporting, transparency and systematic internalisers more effective. In addition, the lack of equivalence decisions for non-EU trading venues, particularly in a post-Brexit environment, could result in market fragmentation.
EU policy-makers are now reviewing MIFID II/MIFIR in light of market developments to determine which legislative adjustments are appropriate. ISDA believes the European Commission should adopt a ‘Refit’ approach, rather than a complete re-write of the legislation. This paper explores five key areas where a recalibration of the rules would be appropriate and would further enable safe, efficient derivatives markets.
Click on the attached PDF to read the full paper.
Documents (1) for Review of the MIFID II/MIFIR Framework
Latest
DRR Expanded to Cover Hong Kong's Revised Rules
ISDA has expanded its Digital Regulatory Reporting (DRR) solution to support revised derivatives reporting rules in Hong Kong, enabling in-scope firms to implement the changes cost-effectively and accurately. The amendments from the Hong Kong Monetary Authority (HKMA) and the Securities...
Joint Letter on Simplification of EU Taxonomy
On October 6, ISDA, the Association for Financial Markets in Europe (AFME), the European Fund and Asset Management Association (EFAMA), the European Association of Co-operative Banks (EACB) and the European Banking Federation (EBF) published a policy statement in support of...
Paper on Removal of SI Regime
On October 10, ISDA, the Association for Financial Markets in Europe (AFME) and the International Capital Market Association (ICMA) published a paper on the practical implications of the recent discontinuation of the systematic internalizer (SI) regime for derivatives, bonds and...
ISDA Analysis to ESMA on Reporting Costs
ISDA has submitted to the European Securities and Markets Authority (ESMA) an analysis of the costs of regulatory reporting, which proposes where savings can be made most effectively. This document supplements the recent response submitted by ISDA, the Association for...