MiFID II and MiFIR—market structure
MiFID II and MiFIR—market structure

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • MiFID II and MiFIR—market structure
  • MiFID II and MiFIR—changes to market structure
  • Practical considerations of market structure requirements for relevant firms
  • Organised trading facilities (OTFs)
  • Multilateral trading facilities (MTFs)
  • Regulated markets (RMs)
  • Multilateral systems
  • Proprietary trading on RMs, MTFs and OTFs
  • Systematic internalisers (SIs)
  • Trading and clearing requirements
  • more

BREXIT: UK is leaving EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance, see Practice Note: The impact of Brexit on the MiFID II regime.

This Practice Note provides an overview of the principal changes made in relation to market structure by the revised and recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) (MiFIR), which came into effect on 3 January 2018 and replaced the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID I). For more information about trading venues and systematic internalisers (SIs) under MiFID II and MiFIR, see the Practice Notes: Regulated Markets under MiFID II and MiFIR, Multilateral Trading Facilities (MTFs), Organised Trading Facilities (OTFs) and Systematic internalisers.

MiFID II and MiFIR—changes to market structure

Following a review of the MiFID I regime, the final texts of MiFID II and MiFIR were approved by the European Parliament and Council in Spring 2014 and published in the Official Journal of the European Union in June 2014. MiFID II and MiFIR made a number of significant changes to market structure, including:

  1. the creation of the organised trading facility (OTF)—a new category of trading venue

  2. requiring more trading to take place on regulated