Asset Management

Markets in Financial Instruments Regulation (MiFIR): European Commission proposal

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The European Commission has published legislative proposals to amend MiFIR and MiFID II. These amendments are the output from the MiFID II review and the legislative procedure is expected to take 18 months.
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The European Commission has focused on three key areas for revision:

  1. Improving the transparency and availability of market data;
  2. Improving the level playing field between execution venues;
  3. Ensuring EU market infrastructures remain competitive internationally.

Amendments to MiFID II

These amendments are intended to ensure coherence with MiFIR.

DEA licensing relaxed
The licensing requirement for persons only dealing on own account on a trading venue via Direct Electronic Access (DEA) is removed (on the basis that DEA providers will act as gatekeepers to ensure that DEA users have the necessary and appropriate systems and controls in place and orderly trading can be maintained).

Data standards arrangements
Member states must implement a requirement for trading venues to have arrangements in place to meet data quality standards now included in MiFIR.

RTS 27 best execution reporting deleted
The best execution reporting requirement in Art 27 (3) MiFID II (RTS 27 reporting) is being deleted. These best execution reports will no longer be required because CTPs will provide sufficient post-trade information.