MIFID-II

Markets in Financial Instruments Directive II regulation.

Definition

MiFID II replaces MiFID I (2007) and mandates: pre- and post-trade transparency, RTS 22 transaction reporting to NCAs, best execution with RTS 27/28, framing of inducements and execution research, research unbundling, standardised identifiers (LEI mandatory for any party). Coupled with the MiFIR regulation (EU 600/2014).

Origin

EU Directive 2014/65/EU adopted May 2014, effective January 3, 2018.

Example in context

A European broker reports each execution to its NCA via Approved Reporting Mechanism (ARM) in RTS 22 ISO 20022 format.

Related terms

• EMIR — companion OTC derivatives regulation.