MiFID II

Markets in Financial Instruments Directive (MiFID II)

Directive 2014/65/EU
In forceDirectiveESG & Governance

This Directive aims to establish a harmonised regulatory framework for EU markets in financial instruments, covering the conditions for the authorisation and operation of investment firms, regulated markets and data reporting services providers, as well as the requirements for branches of third-country firms in the EU. It strengthens investor protection, market integrity and trading transparency, brings OTC derivatives and exchange-traded derivatives under integrated supervision, and lays down detailed rules on emerging trading technologies and risks such as algorithmic trading, high-frequency trading and position limits on commodity derivatives.

Timeline

  1. 2 Jul 2014
    Entry into force
  2. 2 Nov 2014
    Investment firm authorisation requirements
  3. 2 Nov 2014
    Operation of regulated markets, MTFs and OTFs
  4. 2 Nov 2014
    Client protection and best execution
  5. 2 Nov 2014
    Algorithmic trading and high-frequency trading controls
  6. 2 Nov 2014
    Position limits and position management for commodity derivatives
  7. 2 Nov 2014
    Direct electronic access system requirements
  8. 2 Nov 2014
    Consolidated order reporting
  9. 2 Nov 2014
    Trade surveillance and market abuse detection
  10. 2 Nov 2014
    SME growth markets reaching the target of 50% SME issuers]: annual assessment; [Application to branches of third-country firms
  11. 31 Dec 2017
    Transitional period for clearing and margin requirements for energy derivatives
  12. 31 Dec 2018
    Implementation deadline for consolidated tape providers for non-equity financial instruments

Key facts

Reference
Directive 2014/65/EU
Adopted
15 May 2014
Published
12 Jun 2014
Status
In force
Topic
ESG & Governance
Industries
Financial Services

Main compliance requirements

Paid members only

The main compliance requirements, applicability questions and penalties are available in the ZC Smart Compliance Hub. Paid members and clients can sign in to the Hub to view them.

View in the Smart Compliance Hub ↗Apply for Library access

Related legislation

  • Based on Directive 2004/39/EC (Markets in Financial Instruments Directive)
  • repeals and replaces Council Directive 93/22/EEC (Investment Services Directive)
  • applies alongside Regulation (EU) 600/2014 (Markets in Financial Instruments Regulation), Regulation (EU) 648/2012 (Regulation on OTC derivatives, central counterparties and trade repositories), Regulation (EU) 596/2014 (Market Abuse Regulation), Directive 2009/65/EC (UCITS Directive), Directive 2013/36/EU (Directive on the prudential supervision of credit institutions and investment firms) and Directive 2011/61/EU (Alternative Investment Fund Managers Directive)
  • builds on the requirements of Directive 2003/87/EC (Emissions Trading System) and Directive 2002/92/EC (Insurance Mediation Directive)
  • involves amendments to the relevant provisions of Directive 2002/87/EC, Directive 2009/138/EC, Directive 2001/34/EC, Directive 2003/71/EC, Regulation (EU) 575/2013, Regulation (EU) 1227/2011, Directive 2009/72/EC, Directive 2009/73/EC, Regulation (EC) 714/2009, Regulation (EC) 715/2009, Directive 97/9/EC, Directive 95/46/EC and Directive 2002/58/EC.

Official sources

Directive 2014/65/EU on markets in financial instruments

Full text on EUR-Lex (Directive 2014/65/EU)

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