Markets

After several years of MiFID I application, the securities markets regulatory framework needs to be strengthened in order to adapt it to the new market reality and to incorporate numerous improvements. Such need has been demonstrated by the financial crisis. This regulatory reform aims to contribute to the creation of a more competitive, integrated and efficient securities market within the European Union.

The new set of rules pursues, inter alia, the following three objectives:

• To channel trading that takes place outside organised platforms (usually referred to as over-the-counter or OTC trading) to trading venues.
• To increase transparency in the pre- and post-trading phase.
• To introduce controls on algorithmic trading.

The main developments envisaged in the MiFID II Directive and the MiFIR Regulation (also jointly referred to as MiFID II-MiFIR) on the new structure of securities markets and the main obligations for investment firms (IFs), trading venues and data reporting services providers are described below.

Most of the changes introduced apply from 3 January 2018.

Main subject areas

• Market structure
• OTC trading limitation
• Pre- and post-trading transparency
• Algorithmic trading
• Commodities Derivatives
• Access Provisions

Legal framework

• Commission delegated acts and implementing acts: Regulations
• ESMA Guidelines. ESMA Q&A. ESMA opinions.

Implementation at national level

• New limits on maximum positions to be held by holders in warrants and commodity derivative contracts traded on stock exchanges and the Spanish financial futures market (MEFF) (18.03.21)
• Application of MiFID II/MiFIR, on issues related with markets and financial instruments (12.03.18)
• MiFID II - MiFIR Implementation Task Force - topics related to markets and instruments

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