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.

© ekapolsira / Adobe Stock

Written by Angelos delivorias (1st edition).

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 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 shares, bonds, exchange-traded funds (ETFs) and derivatives, 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 files are currently under review by the co-legislators. Within the European Parliament, they have both been assigned to the Committee on Economic and Monetary Affairs. The draft reports are expected soon.

Version

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 Europe, Germany)
Karima Delli (Greens/EFA, France)
Gunnar Beck (ID, Germany)
Johan Van Overtveldt (ECR, Belgium)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Publication of draft report
© ekapolsira / Adobe Stock

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