Markets in Financial Instruments Regulation (MiFIR) and the accompanying Markets in Financial Instruments Directive (MiFID II) regulate the provision of investment services in a multitude of financial instruments at regulated trading venues, as well as in over-the-counter (OTC) trading. The legislative acts have fundamentally transformed the European securities market by expanding transparency provisions, strengthening the stability and integrity of financial market infrastructure, revising the markets’ microstructure (market making, algorithmic trading, requirements regarding the security mechanisms of trading venues and market participants, tick sizes) and aiming at improved quality and availability of market data.

However, in the implementation of the Regulation and the Directive, fragmentation of equity market structures has been observed against the background of the staggering number of registered execution venues in the EU which are subject to different regulatory requirements. Without establishing a level playing field and improving transparency and data quality, EU capital markets will not be able to benefit from a centrally consolidated overview of trading data which is a key objective within the legislation. In addition, the adequacy of open access provisions for exchange traded derivatives is being questioned, taking into account that forcing the interconnectedness of systemically important financial market infrastructures in derivatives could pose threats to market integrity and stability, and hamper innovation and competition.

The Regulation and Directive have been in force since July 2014, with the Directive provisions being transposed into national law Europe-wide by July 2017. In spring 2020, the European Commission conducted a public consultation on the priorities of a MiFID II/MiFIR review. However, since the Covid-19 pandemic required a swift policy response to support the economic recovery, it has been decided to split the review into a limited set of targeted amendments (“quick-fix”) in the second half of 2020, and a broader review that was postponed to the end of 2021. The broader review proposal included, amongst others, phasing out of payment-for-order-flows, consolidated tapes for market data provided by platforms on which financial instruments are traded, and new rules on commodity derivatives. It was adopted by the co-legislators in February 2024 and is pending publication in the Official Journal of the EU before entering into force.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.