The original Markets in Financial Instruments Directive (MiFID) was implemented in November 2007. It introduced competition to the EU trading landscape and provided a ‘passport’ for trading venues and investment firms to operate throughout Europe on the basis of authorisation in their home Member State (MS). It also introduced various investor protection measures.
On 20 October 2011, the European Commission (EC) adopted a legislative proposal for the revision of MiFID. The proposals take the form of a revised Directive and a new Regulation, which together are commonly referred to as ‘MiFID II’. The new proposals are designed to take into account developments in the trading environment since the implementation of MiFID in 2007, including advances in technology and gaps in transparency to investors and regulators. It is also a response to the financial crisis.
The proposals are now with the European Parliament (EP) and the Council of the European Union for discussion. A final agreement between the legislative bodies on the Level I proposals is expected until some point in 2013. Implementation of the new measures is not expected before the end of 2014 at the very earliest.
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