What the EU is doing and why
The EU has established a comprehensive set of rules on investment services and activities with the aim to promote financial markets that are
- fair
- transparent
- efficient
- integrated
The first set of rules adopted by the EU helped to increase the competitiveness of financial markets by creating a single market for investment services and activities. The rules also ensured a high degree of harmonised protection for investors in financial instruments, such as shares, bonds or derivatives.
However, after the 2008 financial crisis it became clear that more robust rules were needed to
- further strengthen investor protection
- address the development of new trading platforms and activities
Policy making timeline
- 27 March 2024Communication - MiFIR
- 1 February 2024Legislation - Capital markets union
- 18 October 2022Legislative proposal
As highlighted in the 2022 State of the Union address, energy companies nowadays are facing severe problems with liquidity in electricity futures markets, which is putting the proper functioning of our energy system at risk. In this context, the Commission has proposed to the Council to adopt under Article 122 of the TFEU an intra-day price spike collar, a volatility management mechanism.
- 25 November 2021Communication - Capital markets union
- 16 February 2021Legislation - Amendments to MiFID II
Adoption of the Directive to integrate sustainability factors in the product governance obligations that was proposed in the July 2020 capital market recovery package
- 24 July 2020Legislative package - Coronavirus response
- 17 February 2020Consultation
Public consultation on the review of the MiFID II/MiFIR regulatory framework
End date: 18 May 2020
- June 2014Legislation - MiFID II and MiFIR
In June 2014 the European Commission adopted new rules revising MiFID framework. These consisted of a directive (MiFID II) and a regulation (MiFIR).
MiFID II aims to reinforce the rules on securities markets by
- ensuring that organised trading takes place on regulated platforms
- introducing rules on algorithmic and high frequency trading
- improving the transparency and oversight of financial markets – including derivatives markets - and addressing some shortcomings in commodity derivatives markets
- enhancing investor protection and improving conduct of business rules as well as conditions for competition in the trading and clearing of financial instruments
The revised MiFID rules also strengthen investor protection by introducing requirements on the organisation and conduct of those involved in these markets.
MiFIR sets out requirements on
- disclosure of data on trading activity to the public
- disclosure of transaction data to regulators and supervisors
- mandatory trading of derivatives on organised venues
- removal of barriers between trading venues and providers of clearing services to ensure more competition
- specific supervisory actions regarding financial instruments and positions in derivatives
MiFID II and MiFIR became applicable starting 3 January 2018.
- April 2004Legislation - MiFID
In April 2004 the European Commission adopted the Markets in Financial Instruments Directive 2004/39/EC (MiFID). In force from 31 January 2007 to 2 January 2018, it is a cornerstone of the EU's regulation of financial markets. It governed
- provision of investment services in financial instruments by banks and investment firms
- operation of traditional stock exchanges and alternative trading venues
While MiFID created competition between these services and brought more choice and lower prices for investors, shortcomings were exposed in the wake of the financial crisis.
Basic information
- Text of MiFID II (2014/65/EU)
- Summary of the legislation: Better regulated and transparent financial markets
Delegated and implementing acts
Transposition by EU Member States
- MiFID II was transposed by all EU Member states into their national law.
- Transposition history of MiFID II by EU Member States
- Guidance on the implementation and interpretation of the AIFMD
Ongoing revision
- Ongoing revision of MiFID II
- Legislative initiative to make public capital markets more attractive for EU companies and facilitate access to capital for SMEs
Legislative history
Basic information
- Text of MiFIR (600/2014/EU)
- Summary of the legislation: Markets in financial instruments regulation (MiFIR)
Delegated and implementing acts
Transposition by EU Member States
- MiFIR was transposed by all EU Member states into their national law.
- Report
- Guidance on the implementation and interpretation of MiFIR
- European Banking Authority (EBA) guidelines on the implementation and interpretation of the PSD2
- Questions and answers on MiFIR published by the Commission
Ongoing revision
- Ongoing revision of MiFIR
- Legislative initiative on the review of the regulatory framework for investment firms and market operators
- Second ongoing revision of MiFIR
- Legislative initiative to make public capital markets more attractive for EU companies and facilitate access to capital for SMEs
Legislative history
Basic information
- Text of MiFID (2004/39/EC)
- Summary of the legislation: Markets in financial instruments (MiFID) and investment services
Delegated and implementing acts
Transposition by EU Member States
- MiFID was transposed by all EU Member states into their national law.
- Transposition history of MiFID by EU Member States
- Guidance on the implementation of Directive 2004/39/EC (MiFID)