Members' Research Service By / June 28, 2022

Amendments to MiFID II and MiFIR: The EU’s markets in financial instruments [EU Legislation in Progress]

Several pieces of legislation regulate how capital markets in the EU operate. Two main areas of legislation relate to i) investment services and activities; and ii) investment funds.

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Written by Issam Hallak (3rd edition, updated on 21.09.2023).

The second Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR) are the principal texts regulating investment services and financial markets activities in the EU. Following an extensive consultation and in light of the recent developments in the context of the coronavirus pandemic, the European Commission proposed the establishment of an EU-wide consolidated tape for financial markets instruments, as well as making targeted changes to market structure, so as to increase transparency and strengthen the competitiveness of EU financial markets. Consolidated tape is a high-speed electronic system that reports the latest price and volume data on sales of exchange-listed stock.

The proposals are currently being discussed by the co-legislators. Within the European Parliament, both have been assigned to the Committee on Economic and Monetary Affairs (ECON), which adopted its reports on 1 March 2023 and also decided to enter into trilogue negotiations on that basis. A provisional agreement was reached on 29 June 2023.


Proposal for a Directive of the European Parliament and of the Council amending Directive 2014/65/EU on markets in financial instruments
Proposal for a Regulation of the European Parliament and of the Council 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
Committee responsible:Economic and Monetary Affairs (ECON)COM(2021) 726 and
COM(2021) 727, 25.11.2021
Rapporteur:Danuta Maria Hübner (EPP, Poland)2021/0384(COD) and 2021/0385(COD)
Shadow rapporteurs:Eero Heinäluoma (S&D, Finland)
Nicola Beer (Renew, Germany)
Karima Delli (Greens/EFA, France)
Gunnar Beck (ID, Germany)
Johan Van Overtveldt (ECR, Belgium)
José Gusmão (The Left, Portugal)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Approval of the text agreed in trilogue

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