Today, the European Commission simultaneously proposed a new regulation and directive to replace MiFID, which is the existing directive from 2004. The Commission is issuing these new rules in part in order to target specific types of financial instruments such as OTC derivatives, and market structure issues such as clearing through central counterparties, trading through organized trading facilities and reporting to trade repositories.
The Commission has also suggested new rules for algorithmic trading, post-trade services, dark pools and other trading activities. In order to strengthen the current regulation, the Commission agreed on stricter rules for portfolio management, investment advice and the offer of complex financial products.
Further derivatives restructuring will be discussed in Cannes in early November at the G20 Summit.
To read the full text of the European Commission’s Impact Assessment click here
To read a summary of the text of the European Commission’s Impact Assessment click here
To read the Review of the Markets Instruments Directive: FAQ click here