10 Markets in Financial Instrument Directive II (MiFID II)/Markets in Financial Instruments Regulation (MiFIR) »
Nico Leslie, Aaron TaylorFrom: Brexit and Financial Regulation
Edited By: Jonathan Herbst, Simon Lovegrove
This chapter examines MiFID II and MiFIR. Like the original MiFID, MiFID II applies to investment firms and market operators. Alongside MiFID II, the European Union passed two further regulations: the European Market Infrastructure Regulation (EMIR) and MiFIR. The purpose of EMIR was to impose closer regulation on over-the-counter derivatives, including a requirement for clearing through a central counterparty and an obligation to report to a trade repository. The purpose of MiFIR was broadly to ensure that all financial trading would be conducted on exchanges, on multilateral trading platforms, or through organised trading facilities. EMIR and MiFIR, being regulations, are directly effective in English law. By contrast, MiFID II, being a directive, required domestic implementing legislation. The chapter then looks at the issues regarding MiFID II arising specifically in the context of Brexit.