MiFID2 and MiFIR

Topic Guides

MiFID2 and MiFIR herald important changes to the regulation of financial markets in Europe. This Topic Guide helps you navigate both the legislation itself and the complex array of secondary rules through which it is being implemented and allows you easy access to briefing notes and other materials prepared by Clifford Chance's team of financial regulation experts.

Inside this Topic Guide

Topic overview and current status

The recast Markets in Financial Instruments Directive (2014/65/EU) (MiFID2) and Markets in Financial Instruments Regulation (MiFIR) set out a harmonised EU framework for the regulation of investment services and activities. MiFID2 and MiFIR set out a licensing and passporting regime for EEA investment firms and conduct of business requirements applicable to firms (including investment firms, credit institutions and fund managers) providing investment services and activities in the EEA. They also regulate trading venues and data reporting service providers.

Although the original Markets in Financial Instruments Directive 2004/39/EC (MiFID1) was widely regarded to have successfully achieved its main objectives (by increasing investor protection and competition), the vulnerability of financial markets after the financial crisis and the significant market developments since the implementation of MiFID1 in 2007 prompted further reforms introduced under MiFID2 and MiFIR.

The key changes introduced by MiFID2 and MiFIR include:

an overhaul of market structure, including the introduction of a new multilateral, discretionary trading venue for non-equities, the Organised Trading Facility (OTF);
increased transparency and transaction reporting requirements;
equities and derivatives trading obligations;
heightened conduct of business requirements and supervisory enforcement powers;
much greater regulation of commodities business including position limits and reporting; and
new rules for "third country" (i.e. non-EU) firms accessing EU markets.

Status:

MiFID2 and MiFIR were published in the Official Journal of the European Union on 12 June 2014. Originally scheduled to apply from 3 January 2017, their implementation was delayed by one year to 3 January 2018. The two delegated Regulations and one delegated Directive required under MiFID2/MiFIR were published in the Official Journal on 31 March 2017 and entered into force on 20 April 2017.

MiFID2 was required to be transposed into national law by 3 July 2017. Member States required to apply the measures from 3 January 2018 except for provisions transposing Article 65(2) on consolidated tape providers which applied from 3 September 2019. MiFIR and most provisions of the Delegated Regulations, regulatory technical standards (RTS) and implementing technical standards (ITS) applied from 3 January 2018. The status of the RTS and ITS is indicated in the Technical Standards table in the Legislation: Level 1 and Level 2 section below.

Next:

The Investment Firms Directive (Directive (EU) 2019/2034) and Investment Firms Regulation (Regulation (EU) 2019/2033) introduced changes to the third country access provisions under MiFID2 and MiFIR, from June 2021.

The transitional opt-out from MiFIR open access requirements in relation to ETDs ended on 3 July 2021, however it is expected to be extended by two years to 3 July 2023.

On 26 February 2021, Directive (EU) 2021/338 amending MiFID2 as regards information requirements, product governance and position limits (MiFID2 Quick Fix), adopted as part the Commission's Capital Markets Recovery Package in response to COVID-19, was published in the Official Journal. It entered into force on 27 February 2021 and has applied since 28 February 2022. Member States were required to transpose the amendments into national law by 28 November 2021. The amendments cover investor protection, commodity derivatives and research.

On 2 August 2021, Delegated Directive (EU) 2021/1269 amending (EU) 2017/593 as regards the integration of sustainability factors into product governance obligations and Delegated Regulation (EU) 2021/1253 amending (EU) 2017/565 as regards the integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms were published in the Official Journal. The amendments to the Delegated Directive applied from 22 November 2022. The amendments to the Delegated Regulation applied from 2 August 2022.

On 25 November 2021, the Commission adopted a Capital Markets Union (CMU) legislative package including a proposal for a regulation amending MiFIR and a directive amending MiFID2, including proposed changes to the EU equities and non-equities transparency regimes, transaction and financial instrument data reporting, the share and derivatives trading obligations, payment for order flow (PFOF) and best execution reporting. The EU Council agreed its negotiating position on MiFIR2/MiFID3 on 20 December 2022 and the EU Parliament's Committee on Economic and Monetary Affairs (ECON) adopted reports on the proposals on 1 March 2023. Further information in the MiFID2/MiFIR Review section below.

On 29 April 2022, ESMA published a final report on certain retail investor protection topics under MiFID2 setting out technical advice to the Commission on legislative proposals to implement aspects of the retail investment strategy. The Commission published a call for evidence on the retail investment package on 3 May 2022 and is expected to adopt proposals in Q1 2023.

Clifford Chance contacts

Maria Luisa Alonso (Madrid)	Caroline Dawson (London)
Chris Bates (London)	Simon Gleeson (London)
Marc Benzler (Frankfurt)	Frédérick Lacroix (Paris)
Anna Biala (Warsaw)	Caroline Meinertz (London)
Lucio Bonavitacola (Milan)	Monica Sah (London)
Simon Crown (London)

Legislation, regulation and official documentation

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MiFID2/MiFIR Review

November 2021 CMU legislative package - MiFIR2/MiFID3

On 25 November 2021, the Commission adopted a Capital Markets Union (CMU) legislative package including proposed changes to MiFIR and MiFID2 relating to the EU equities and non-equities transparency regimes, transaction and financial instrument data reporting, the share and derivatives trading obligations, payment for order flow (PFOF) and best execution reporting.

Proposal for a Regulation amending Regulation (EU) No 600/2014 as regards enhancing market data transparency, removing obstacles to the emergence of a consolidated tape, optimising the trading obligations and prohibiting receiving payments for forwarding client orders (MiFIR2)
- (April 2023) MiFIR2 redline showing the Council of the EU's proposed changes | MiFIR2 redline showing the European Parliament's proposed changes
- (November 2021) MiFIR2 redline showing the Commission's proposed changes (produced by Clifford Chance)
Proposal for a Directive amending Directive 2014/65/EU (MiFID3)
- (April 2023) MiFID3 redline showing the Council of the EU's proposed changes | MiFID3 redline showing the European Parliament's proposed changes
- (November 2021) MiFID3 redline showing the Commission's proposed changes (produced by Clifford Chance)
Impact assessment report accompanying the proposals | Executive summary

Background and preparatory materials

(18 October 2023) Council publishes final compromise texts - MiFIR2 compromise text | MiFID3 compromise text | Letter from the Council to the Parliament on the texts
(29 June 2023) Council and Parliament reach provisional agreement on MiFIR2 and MiFID3 - press release
(21 April 2023) European Parliament briefing on amendments to MiFID2 and MiFIR
(1 March 2023) ECON Committee adopts reports on MiFIR2/MiFID3 - Press release | Report on MiFID3 (published 3 March 2023) | Report on MiFIR2 (published 8 March 2023)
(20 December 2022) Press release - EU Council's Committee of Permanent Representatives (Coreper) agrees its negotiating position on MiFIR2/MiFID3
(1 June 2022) ECB opinion on MiFIR Review proposal
(15 March 2022) ESMA's technical comments on the MiFIR Review proposal | Press release
(24 February 2021) Speech by Mairead McGuinness, European Commissioner for Financial Services, Financial Stability, and Capital Markets Union - What Vision for Europe, considers, among other things, next steps on the MiFID Review, including an intention to adopt a legislative proposal at the end of 2021
(17 February 2020) European Commission, Public consultation on the review of the MiFID2/MiFIR regulatory framework | Consultation webpage - closed 20 April 2020 - both the ESMA reports and this consultation will inform the review reports for the European Parliament and the Council, including legislative proposals where considered necessary.
- Priority areas of review include consolidated tape, investor protection (including the suggestion for a semi-professional category), research unbundling rules and SME research coverage, and commodity markets.
- Other / non-priority areas of review include the derivatives trading obligation, multilateral systems (trading venues), double volume cap, non-discriminatory acess, digitalisation and new technologies, and FX (including whether spot FX should be brought into scope of regulation)
(19 November 2019) Speech by Steven Maijoor, Chair of ESMA, on banking and the MiFID2 Review, delivered at the Euro Finance Week in Frankfurt
(23 May 2019) Formal request to ESMA for technical advice on reports to be submitted by the Commission under MiFID2 and MiFIR
(27 March 2019) ESMA letter to the European Commission on MiFID2/MiFIR Review Reports - sets out timing of reports required under MiFID2 | Press release

German Ministry of Finance consultation

(27 August 2019) BMF position papers on MiFID2, the PRIIPs Regulation and MiFIR forwarded to the European Commission:
- Necessary amendments and revisions to investor protection provisions in MiFID and PRIIPs (in English)
- Necessary amendments and revisions to secondary market provisions in MiFID and MiFIR (in English)
- Press release (in German)
(8 January 2019) German Federal Ministry of Finance (BMF) consultation on MiFID2/MiFIR (in German) - closed 15 March 2019

MiFID2 Mandates | MiFIR Mandates

MiFID2 Mandates
Article	Topic	Consultations	Reports
Article 90(1)(a)	Functioning of OTFs	(25 September 2020) Consultation paper on the functioning of organised trading facilities \| Press release	(8 April 2021) Final report on the functioning of OTFs \| Press release
Article 90(1)(b)	Regime for SME growth markets NB. Changes proposed as part of 'quick fix'	(6 May 2020) Consultation on the functioning of the regime for SME Growth Markets under MiFID and on the amendments to MAR for the promotion of the use of SME Growth Markets \| Press release	(7 April 2021) Final report on SME Growth Markets \| Press release
Article 90(1)(c)	Impact of algorithmic trading requirements	(18 December 2020) Consultation on algorithmic trading \| Press release	(28 September 2021) Final report on algorithmic trading \| Press release
Article 90(1)(d)	Experience with the mechanism for banning certain products or practices NB. ESMA ceased renewal of product intervention powers in July 2019	(30 September 2019) Call for evidence on the effects of product intervention measures regarding CFDs and binary options \| Press release	No formal report issued
Article 90(1)(e)	Application of sanctions	No public consultation	(29 March 2021) Technical advice on the application of administrative and criminal sanctions under MiFID2/MiFIR \| Press release
Article 90(1)(f)	Commodity derivatives position limits / management NB. Priority area identified in 2020 Commission consultation; changes proposed as part of 'quick fix'	(5 November 2019) Consultation paper on MiFID2 review report on position limits and position management, and Draft Technical Advice on weekly position reports \| Press release	(1 April 2020) MiFID2 Review report on position limits and position management \| Press release
Article 90(1)(g)	Development of prices for pre- and post-trade transparency data	(12 July 2019) Consultation paper on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments \| Consultation webpage	(5 December 2019) Review Report on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments \| Press release
Article 90(1)(h)	Impact of inducements and costs and charges disclosure requirements NB. Priority area identified in 2020 Commission consultation; changes proposed as part of 'quick fix'	(17 July 2019) Call for evidence on impact of inducements and costs and charges disclosure requirements \| Webpage	(31 March 2020) Technical advice to the EU Commission on the impact of the inducements and costs and charges disclosure requirements \| Press release
Article 90(2)	Consolidated Tape NB. Priority area identified in 2020 Commission consultation	(12 July 2019) Consultation paper on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments \| Consultation webpage - covered in the same consultation as for Article 90(1)(g) mandate with respect to equity instruments	(9 October 2020) Study on the Creation of an EU Consolidated Tape - prepared by Market Structure Partners for the EU Commission (5 December 2019) Review Report on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments \| Press release ESMA expected to consult and report with respect of non-equity instruments by March 2021
Article 90(4)	C6 energy derivatives contracts and the clearing obligation	No public consultation	(26 January 2020) Report on C6 energy derivatives contracts and the EMIR requirements \| Press release
MiFIR Mandates
Article	Topic	Consultations	Reports
Article 19(1)	Systematic internalisers in non-equity instruments	(3 February 2020) Consultation paper on MiFIR report on systematic internalisers in non-equity instruments \| Press release	(16 July 2020) MiFIR report on systematic internalisers in non-equity instruments
Article 52(1)-(3)	Impact of the transparency obligations including volume cap mechanism	(10 March 2020) Consultation on the transparency regime for non-equity instruments and the trading obligation for derivatives \| Press release (4 February 2020) Consultation on the transparency regime for equity and equity-like instruments, the DVC and the trading obligations for shares \| Press release	(25 September 2020) Review Report on the transparency regime for non-equity instruments and the trading obligation for derivatives \| Press release (16 July 2020) Review Report on the transparency regime for equity and equity-like instruments, the double volume cap mechanism and the trading obligations for shares
Article 52(4)	Functioning of Article 26 transaction reporting requirements	(24 September 2020) Consultation paper on the obligations to report transactions and reference data \| Press release	(23 March 2021) Review report on the obligations to report transactions and reference data \| Press release
Article 52(5)	Reducing information asymmetries between market participants	Forthcoming	Report expected: March 2021 (as for consolidated tape)
Article 52(6)	Progress on the DTO	(10 March 2020) Consultation on the transparency regime for non-equity instruments and the trading obligation for derivatives \| Press release - covered in the same consultation as for Article 52(1)-(3) mandate with respect to non-equity instruments	(25 September 2020) Review Report on the transparency regime for non-equity instruments and the trading obligation for derivatives \| Press release - covered in the same report as for Article 52(1)-(3) mandate with respect to non-equity instruments
Article 52(7)	Development in prices for pre-trade and post-trade transparency data from venues and DRSPs	(12 July 2019) Consultation paper on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments \| Consultation webpage - covered in the same consultation as for Article 90(1)(g) MiFID2 mandate with respect to equity instruments	(5 December 2019) Review Report on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments \| Press release - covered in the same report as for Article 90(1)(g) MiFID2 mandate with respect to equity instruments
Article 52(8)	Interoperability provisions in Article 36 MiFIR and Article 8 EMIR		Report expected: January 2022
Article 52(9)	FMI access requirements in Articles 35-37 MiFIR and Articles 7 and 8 of EMIR		Report expected:January 2022
Article 52(10)	Exemption from Article 35 and 36 open access requirements for newly established CCPs		Report expected: January 2022
Article 52(11)	Whether the threshold at Article 36(5) MiFIR remains appropriate		Report expected: January 2022
RTS 1 and 2	Implementing measures for the transparency regime	(1 September 2020) Call for evidence on RTS 1 and 2 review - closed 31 October 2020 (9 July 2021) Consultation paper \| Press release - closed 1 October 2021	(28 March 2022) Final report on the review of RTS 1 (equity transparency) \| Final report on the review of RTS 2 (non-equity transparency) \| Press release

Discussion in relation to certain MiFID2 issues

Third country regimes in the context of UK withdrawal from EU

(13 January 2021) ESMA public statement: reminder of the MiFID2 rules on reverse solicitation in the context of the recent end of the UK transition period | Press release
(26 October 2020) ESMA statement on the its application of the EU's share trading obligation | Press release
(1 October 2020) ESMA updates statement on the impact of Brexit on MiFID2/MiFIR | Press release
(7 October 2019) ESMA updates statement on the impact of no-deal Brexit on the application of MiFID2/MiFIR and BMR
(29 May 2019) Revised public statement on the impact of Brexit on the trading obligation for shares (Article 23 of MiFIR) | 19 March 2019 version
(7 March 2019) ESMA statement on the application of several MiFID2/MiFIR and Benchmark Regulation provisions under a no-deal Brexit
(6 February 2019) Supervisory briefing on the supervision of non-EU branches of EU firms providing investment services and activities
(19 December 2018) ESMA calls on financial firms to improve communication to clients
(3 October 2018) ESMA Chair's speech at WFE Annual Meeting 2018 in Athens on MiFID2 and Brexit preparations
(26 September 2018) Letter from ESMA to European Commission on provision of investment services and activities at the exclusive initiative of the client and outsourcing of functions to third country entities
(20 November 2017) Letter from ESMA to European Commission on placing of trading screens in the EU and lack of temporary suspension regime for the trading obligation for derivatives

Possible operation of SI broker crossing networks

(28 August 2017) Commission adopts Delegated Regulation amending the MiFID2 Delegated Regulation (2017/565) as regards the definition of systematic internalisers for the purposes of MiFID2
(20 June 2017) Commission consults on Draft Delegated Regulation to clarify systematic internaliser definition
Correspondence between the European Parliament and European Commission on concerns in relation to the possible establishment of networks of systematic internalisers (SIs) operating broker crossing networks:
- (24 February 2017) Parliament's letter to Commission
- (16 March 2017) Commission's response
- (7 April 2017) Parliament's response
(14 February 2017) ESMA writes to European Commission on systematic internalisers operating broker crossing networks | Press release

Temporary exemption for exchange traded derivatives (ETDs)

(13 July 2021) ESMA statement on the supervisory approach to MiFIR open access provisions for ETDs in light of the likely extension of the transitional period to 3 July 2023
(3 July 2020) Notice of information on postponement of entry into application of MiFIR open access provisions with regard to ETDs - transitional period extended to 3 July 2021
(11 September 2017) Report from the Commission to the European Parliament and the Council on the need to temporarily exclude exchange-traded derivatives from the scope of Articles 35 and 36 of the MiFIR
(4 April 2016) ESMA publishes Risk Assessment on whether ETDs should be exempted for a period of 30 months from non-discriminatory access provisions under Articles 35 and 36 MiFIR to inform Commission report to be presented to Parliament and Council by 3 July 2016 | Press release
(10 February 2016) European Systemic Risk Board (ESRB) published a response to ESMA on a temporary exclusion of exchange-traded derivatives (ETDs) to inform ESMA's risk assessment for the Commission, which is required to submit a report to the Parliament and Council by 3 July 2016.

Mutual recognition of derivative trading venues

(1 April 2019) European Commission adopts Implementing Decision on the equivalence of the legal and supervisory framework applicable to approved exchanges and recognised market operators in Singapore in accordance with MiFIR | Annex | Press release
(5 December 2017) European Commission adopts Implementing Decision on the equivalence of the legal and supervisory framework applicable to designated contract markets and swap execution facilities in the United States of America in accordance with MiFIR | Annex | Press release
(13 October 2017) United States Commodity Futures Trading Commission (CFTC) and the European Commission announce a common approach for the mutual recognition of EU and US derivatives trading venues. Under the approach both EU and US companies will be able to trade certain derivatives on their respective trading venues while complying with their trading obligations | Joint announcement | Commission Implementing Decision on equivalence under Article 11 EMIR

Exemptions from transparency requirements for central banks

(29 June 2019) Delegated Regulation (EU) 2019/1000 amending Delegated Regulation (EU) 2017/1799 as regards the exemption of the People's Bank of China from pre- and post-trade transparency requirements
(12 June 2017) Commission adopts Commission Delegated Regulation (EU) 2017/1799 extending the exemption in Article 1(6) MiFIR to specified third country central banks and the Bank for International Settlements
(9 June 2017) Commission presents report to the European Parliament and the Council on exemptions for third-country central banks and other entities under MiFIR

Product intervention powers under MiFIR

Webpage for opinions on national product intervention measures
See also the MiFID2 Review section on this Topic Guide
(3 February 2020) Final Report: ESMA's technical advice to the Commission on the effects of product intervention measures (ESMA35-43-2134) | Press release
(30 September 2019) Call for evidence on effects of product intervention measures regarding CFDs and binary options on market participants and clients | Press release
(31 July 2019) ESMA ceases renewal of product intervention measures relating to contracts for differences
(1 July 2019) ESMA ceases renewal of product intervention measure relating to binary options
(27 March 2018) ESMA agrees product intervention measures on contracts for differences and binary options to retail clients | Additional information | Renewed on 9 November 2018 | Renewed on 18 February 2019
(18 January 2018) Call for evidence on potential product intervention measures on contracts for differences and binary options to retail clients
(16 June 2017) Securities and Markets Stakeholder Group own initiative report on product intervention under MiFIR
(12 January 2017) Opinion on product intervention powers | Press release

MiFID1

Clifford Chance MiFID1 material

MiFID Connect online tool for UK implementation of MiFID1 including guidelines on outsourcing, suitability and appropriateness, investment research, best execution, and conflicts of interest.
MiFID1 application of key provisions by client category.

MiFID Review materials (2010)

Additional information

(October 2010) CESR Response to questions 1 to 14 and 19 of Commission request for additional information
(July 2010) CESR Responses to questions 15 to 18 and 20 to 25 of Commission request for additional information
(March 2010) CESR Response letter to Commission request for additional information in relation to the MiFID Review
(March 2010) Commission letter to CESR – request for additional information in relation to the MiFID Review

Client categorisation

(October 2010) CESR Feedback statement on technical advice – client categorisation
(October 2010) CESR Technical advice – client categorisation
(July 2010) CESR Consultation paper on client categorisation

Standardisation and organised platform trading of OTC derivatives

(December 2010) CESR Feedback statement on CESR technical advice – standardisation and organised platform trading of OTC derivatives
(October 2010) CESR Technical advice – standardisation and organised platform trading of OTC derivatives

Equity markets

(October 2010) CESR Technical advice – equity markets
(October 2010) CESR Technical advice – post trade transparency equities
(July 2010) CESR Technical advice – equity markets
(April 2010) CESR Consultation paper on equity markets
(April 2010) CESR Call for evidence – micro-structural issues of the European equity markets

Non-equity markets transparency

(October 2010) CESR feedback statement on technical advice – non-equity markets transparency
(July 2010) CESR Technical advice – non equity markets transparency
(June 2010) CESR Responses to consultation on non equity markets transparency
(May 2010) CESR Consultation paper on non equity markets transparency
(July 2009) CESR Report on transparency of corporate bond, structured finance product and credit derivatives markets

Transaction reporting

(December 2010) CESR Feedback statement on extension of transaction reporting
(July 2010) CESR Consultation paper on OTC derivatives and extension of scope of transaction reporting
(July 2010) CESR Technical advice – transaction reporting
(April 2010) CESR Consultation paper on transaction reporting

Investor protection and intermediaries

(November 2010) CESR Report summary of responses to 2009 best execution questionnaire (Sections 1 to 4)
(September 2010) CESR Feedback statement on CESR technical advice – investor protection and intermediaries
(July 2010) CESR Technical advice – investor protection and intermediaries
(April 2010) CESR Consultation paper on investor protection and intermediaries

Level 1: legislative acts

Markets in Financial Instruments (MIFID1) Directive 2004/39/EC (Consolidated version)

Level 2: implementation

Commission Directive 2006/73/EC implementing Directive 2004/39/EC
Commission Regulation 1287/2006/EC implementing Directive 2004/39/EC
Commission FAQs on Level 2

European Commission

European Securities Markets Authority (ESMA)

(18 May 2017) Follow-up report to the peer review on MiFID Conduct of Business rules relating to fair, clear and not misleading information
(25 July 2016) ESMA Q&A on provision of CFDs and other speculative products to retail investors under MiFID
(April 2016) MiFID Suitability Requirements Peer Review Report | Annex
(July 2015) Consultation on draft Joint European Supervisory Authorities' guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector (to replace December 2008 financial committee's Guidelines)
(May 2015) Guidelines on the application of the definitions in Sections C6 and C7 of Annex I of Directive 2004/39/EC (MiFID)
(March 2015) Final draft technical standards on information requirements for assessments of acquisitions and increases in holdings in investment firms (not yet adopted) - amends final draft report published December 2013
(March 2015) Guidelines on automated trading - ESMA peer review among National Competent Authorities.
(September 2014) Consultation on draft guidelines on the application of C6 and C7 of Annex I of MiFID.
(June 2013) Guidelines on remuneration policies and practices.
(July 2012) Guidelines on certain aspects of the MiFID suitability requirements.
(July 2012) Guidelines on certain aspects of the MiFID compliance function requirements.
(24 February 2012) Guidelines on systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities.

Committee of European Securities Regulators (CESR)

(May 2010) MiFID Q&A: (1) Common positions agreed by CESR Members of the Investor Protection and Intermediaries Standing Committee; and (2) Common positions agreed by CESR Members in the area of the Secondary Markets Standing Committee
(19 April 2010) Q&A - Understanding the definition of advice under MiFID 1
(November 2009) Q&A – MiFID complex and non complex financial instruments for the purposes of MiFID appropriateness requirements and feedback statement.
(December 2008) EU financial Committees (CEBS, CESR and CEIOPS) joint guidelines for the prudential assessment of acquisitions and increases in holdings in the financial sector
(May 2007) Recommendations on the passport under MiFID and feedback statement.
(May 2007) Q&A on best execution under MiFID and feedback statement.
(May 2007) Recommendations on inducements under MiFID.
(May 2007) Level 3 guidelines on MiFID transaction reporting.
(February 2007) Level 3 recommendations on the list of minimum records in article 51(3) of the MiFID Implementing Directive and feedback statement
(February 2007) Guidelines and recommendations on publication and consolidation of markets data and feedback statement
(April 2005) Technical advice on possible implementing measures of MiFID and feedback statement – first mandates (extended) and second mandates.
(February 2005) Technical advice on possible implementing measures of MiFID and feedback statement – first mandates

UK transposition of MiFID1

See the FSA MiFID1 Library, for links to FSA and other documents relating to the implementation of MiFID1 in the UK

(2007) How UK transposed MiFID1: HMT memorandum; FSA transposition tables for MiFID1, MiFID1 implementing directive and recitals.

UK regime

The Financial Services and Markets Act 2023 implements, among other things, the outcomes of the Wholesale Markets Review, which was launched in July 2021, with the aim of improving the competitiveness and increasing the flexibility of wholesale capital markets regulation by making changes to the UK MiFID2 framework. See the Tracking the implementation of the Future Regulatory Framework section of the Financial Services and Markets Act 2023 Topic Guide for further developments relating to the implementation of the Wholesale Markets Review.

Statutory amendments arising from Brexit | Legislation | UK Investment Firm Prudential Regime | HM Treasury | FCA | PRA | LSE

Statutory amendments arising from Brexit

The UK government has published various statutory instruments under the European Union (Withdrawal) Act 2018 (EUWA), as amended by the European Union (Withdrawal Agreement) Act 2020 (WAA), to bring most of EU law onto the UK statute book following the UK's withdrawal from the EU, including:

the Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (SI 2018/1403), which amends MiFIR, the tertiary legislation made under MiFID2 and the UK legislation which implemented MiFID;
the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (SI 2018/1149), which puts in place a 'temporary permissions regime (TPR)' to mitigate the impact of the loss of 'passport' rights for EEA firms, including passport rights under MiFID2;
the Financial Services Contracts (Transitional and Saving Provision) (EU Exit) Regulations 2019 (SI 2019/405), which puts in place a 'financial services contracts regime (FSCR)' to mitigate the impact of the loss of 'passport' rights for EEA firms that do not or no longer benefit from the TPR;
the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019 (SI 2019/541), which facilitated the making of equivalence determinations and exemptions under EU legislation, including MiFID2/MiFIR;
the Markets in Financial Instruments, Benchmarks and Financial Promotions (Amendment) (EU Exit) Regulations 2021 (SI 2021/1074), which seeks to address deficiencies in relation to the retained Benchmarks Regulation (BMR) and MiFIR as well as the Financial Promotions Order 2005, including removing the non-discriminatory access regime for exchange-traded derivatives (ETDs).

The FCA is using powers delegated to it under the EUWA, including the temporary transitional power (TTP), to remedy deficiencies in the technical standards under MiFID2/MiFIR and its own rules, and to mitigate other impacts following the UK's withdrawal from the EU, including in relation to MiFID2/MiFIR.

For more information on the FCA's actions with respect to Brexit, see here.

For more information on Brexit and the transition period, please see the Brexit Topic Guide.

Legislation

Markets in Financial Instruments (Investor Reporting) (Amendment) Regulations 2022 (SI 2022/1297) | Explanatory memorandum

Markets in Financial Instruments (Capital Markets) (Amendment) Regulations 2021 | Explanatory memorandum

Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 | Explanatory memorandum

Financial Services and Markets Act 2000 (Markets in Financial Instruments) (No 2) Regulations 2017 | Explanatory memorandum

Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 | Explanatory memorandum

Data Reporting Services Regulations 2017 | Explanatory memorandum

Financial Services and Markets Act 2000 (Prospectus and Markets in Financial Instruments) Regulations 2018 | Explanatory memorandum

The UK Investment Firm Prudential Regime (IFPR)

Throughout 2020/21, HMT and the FCA are consulting on a new UK Investment Firm Prudential Regime (IFPR) for UK MiFID regulated firms, which is intended to be introduced in January 2022.

FCA IFPR webpage
(26 November 2021) FCA policy statement (PS21/17) on implementation of the IFPR | webpage - third of three policy statements on IFPR
- (6 August 2021) FCA consultation (CP21/26) on new UK prudential regime for MiFID investment firms | Press release
(22 October 2021) FCA publishes near-final rules in instruments FCA 2021/38 and FCA 2021/39 | Press release
- (12 November 2021) FCA webpage on amendments to near-final IFPR instrument (FCA 2021/38) originally published in PS21/9
(26 July 2021) FCA policy statement (PS21/9) on the implementation of the IFPR | webpage - second of three policy statements on IFPR
- (19 April 2021) FCA consultation (CP21/7) on own funds requirements, liquidity, ICARA, regulatory reporting and remuneration | Press release
(29 June 2021) FCA policy statement (PS21/6) on the implementation of the IFPR | webpage - first of three policy statements on IFPR
- (14 December 2020) FCA consultation (CP20/24) to introduce the UK IFPR | Press release
(22 June 2021) HMT consultation response on the implementation of the IFPR and Basel 3 standards | webpage
- (7 September 2021) HMT consultation on exclusion of short-term liabilities owed to investment firms from bail-in
- (4 February 2021) HMT consultation on the implementation of the IFPR and Basel 3 standards
(23 June 2020) FCA discussion paper (DP20/2) on a new UK prudential regime for MiFID investment firms | Press release

HM Treasury (HMT)

(1 March 2023) Draft Financial Services and Markets Act 2000 (Commodity Derivatives and Emission Allowances) Order 2023 | Draft explanatory memorandum | Ministerial statement | Webpage - proposed to come into force on 1 January 2025 - will remove the obligation on firms trading in commodity derivatives or emission allowances as an ancillary activity to annually notify the FCA when making use of the exemption from authorisation (the ancillary activities exemption)
(1 July 2021) UK Wholesale Markets Review Consultation | Webpage - announced in the Chancellor's Mansion House Speech, the consultation closed 24 September 2021
- (1 March 2022) Government response
(15 December 2020) Call for evidence on overseas framework, including investment services equivalence under Title VIII of UK MiFIR
(February 2017) Transposition note
(9 February 2017) Document on the outcome of the consultation on the transposition of MiFID2 and draft SIs published on the consultation webpage
(20 September 2016) Consultation on amending definition of regulated advice in Article 53 RAO to reflect the definition under MiFID
(27 March 2015) Consultation on the transposition of MiFID2 | Webpage

Financial Conduct Authority (FCA)

FCA MiFID webpage

Policy and supervisory statements

(3 May 2023) FCA policy statement (PS23/4) on improving equity secondary markets | Webpage | Press release - forms part of the Wholesale Markets Review
(30 November 2021) FCA policy statement (PS21/20) on changes to conduct and organisational requirements under UK MIFID - final policy on removal of best execution reporting (RTS 27 and 28) and exemptions from inducement rules in relation to FICC and certain SMEs research
(4 March 2021) FCA statement of policy on the DVC under UK MiFIR | Press release
(16 December 2020) Update to Supervisory Statement on MiFID Transparency Regime
(14 January 2020) Update to the Supervisory Statement on the Operation of the MiFID Transparency Regime post-Brexit
(4 March 2019) Statements of policy on the operation of the MiFIR transparency regime in the event of a no-deal Brexit
(3 July 2017) Second policy statement (PS17/14) | webpage
(31 March 2017) First policy statement (PS17/5) | press release

Consultations

(5 July 2022) FCA consults on equity secondary markets (CP22/12) - forms part of the Wholesale Markets Review - closed 16 September 2022
(11 March 2022) FCA quarterly consultation paper no. 35 (CP22/4) - various miscellaneous amendments - closed 11 April 2022
(14 July 2021) FCA consultation (CP21/22) on LIBOR transition and the DTO - closed 25 August 2021
(28 April 2021) FCA consultation (CP21/9) on changes to UK MiFID's conduct and organisational requirements | Webpage - closed 23 June 2021 - issued as part of FCA and HMT capital markets review and relates to some areas also covered in EU MiFID Quick Fix (namely research and best execution reporting)
(3 July 2017) Sixth consultation (CP17/19) | webpage
(31 March 2017) Fifth consultation (CP17/8) | webpage
(23 January 2017) CASS 7A & the Special Administration Regime Review (CP17/2), which seeks feedback on minor consequential changes to CASS 7 and CASS 7A to address indirect clearing requirements under EMIR and MiFIR RTS | webpage
(16 December 2016) Fourth consultation (CP16/43) on implementation of MiFID2, including specialist conduct of business regimes, the tied agents regime, SME growth markets and market data as well as other matters | press release
(29 September 2016) Third consultation (CP16/29) on implementation of MiFID2 on conduct of business issues and other matters | press release
(29 July 2016) Second consultation (CP16/19) on implementation of MiFID2 | press release
(15 December 2015) First consultation (CP15/43) on implementation of MiFID2, which mainly covers secondary trading of financial instruments | press release

Other materials

(29 August 2023) FCA issues updates on STO and DTO under UK MiFIR | STO webpage | DTO webpage | Statements of policy on UK MiFID transparency regime
(2 March 2023) FCA publishes trade data review report and launches wholesale data market study | press release
(11 January 2023) Market Watch 72 - observations on the quality of service provided by DRSPs
(22 December 2022) FCA statement extending temporary measures on 10% depreciation notifications
(3 October 2022) Market Watch 70 - observations on the transaction reporting and instrument reference data regime
(31 May 2022) FCA Dear CEO / portfolio letter to data reporting services providers (DRSPs) - sets out key risks and supervisory expectations
(14 March 2022) FCA update on the market share test under the ancillary activities exemption for commodity derivatives
(13 January 2022) FCA statement on supervisory flexibility in relation to the short selling indicator, noting no supervisory action to be taken in respect of Article 26(7), UK MiFID until changes to the UK MiFIR transaction reporting regime have been considered
(20 December 2021) FCA statement on supervision of commodity derivatives position limits - FCA continuing in its approach to not take supervisory action in certain circumstances until HMT concludes its Wholesale Market Review (and in the absence of indications of market abuse)
(9 July 2021) FCA webpage on UK MiFIR data reporting and LIBOR transition
(9 July 2021) FCA statement on supervision of commodity position limits
(19 March 2021) Supervisory flexibility on RTS 27 reports and 10% depreciation notifications - temporary measures in place until the end of 2021
(9 March 2021) FCA publishes annual transparency calculations for UK equity and equity-like financial instruments under UK MiFIR
(2 February 2021) FCA updated statement on the operation of the MiFID markets regime on the trading of Swiss shares
(31 December 2020) FCA statement on use of the Temporary Transitional Power (TTP) to modify the UK’s derivatives trading obligation (DTO)
(4 December 2020) MiFID reporting after the Brexit transition period
(2 December 2020) FCA adds STO transitional direction and explanatory note to its STO webpage
(4 November 2020) FCA statement on the share trading obligation (STO) | Press release
(1 October 2020) Statement on MiFID trade reporting and position limit obligations
(August 2020) Market Watch 64 - Brexit and MiFID transaction reporting
(8 November 2019) Statement on MiFID II inducements and research
(19 September 2019) Implementing MiFID II - multi-firm review of research unbundling reforms | press release
(13 March 2019) Statement on various MiFID obligations and benchmarks regulation if the UK leaves the EU without an implementation period in response to ESMA statement dated 7 March 2019
(14 June 2018) FCA list of cooperation agreements on outsourcing of portfolio management
The FCA's Applications and notifications webpage sets out guidance on applications and notifications under MiFID2 alongside the general guidance note on the authorisation process, forms and prudential categories for first time applicants, and information on varying the scope of permissions for existing investment firms.
On 19 December 2016 the FCA wrote to UK market operators and UK investment firms operating trading venues regarding pre-trade transparency waivers. A joint statement between ESMA and NCAs published 28 September 2017 set out agreed procedures for opinions on MiFID II pre-trade transparency waivers and position limits
(1 August 2017) Occasional Paper No. 29: Aggregate market quality implications of dark trading

Prudential Regulation Authority (PRA)

Policy statements

(28 April 2017) Implementation of MiFID II: Part 2 (PS9/17)
(16 October 2016) MiFID II: Response to CP9/16 (PS29/16)

Consultations

(25 November 2016) Second consultation (CP43/16) on implementation of MiFID2 covering new rules on the management body and organisational requirements, granting authorisations and other consequential amendments | press release
(24 March 2016) First consultation (CP9/16) on implementation of MiFID2, covering passporting and algorithmic trading

London Stock Exchange

(13 October 2017) Requirement for issuer LEI codes
(31 July 2017) Consultation on the amendments to the Rules of the London Stock Exchange in preparation for MiFID2 and general rulebook review | Revised rules mark-up | Cross-referencing tracker tool

Clifford Chance presentations and recordings

Insights on MiFID2 and MiFIR - call recordings

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Insights on MiFID Review