The revised Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (MIFID II/MIFIR) were critical elements of the European Union’s (EU) effort to address shortcomings exposed by the financial crisis. Among other things, the framework was aimed at incentivizing the trading of standardized over-the-counter derivatives on exchanges and electronic trading platforms where appropriate, in order to improve transparency and ensure a level playing field between existing trading execution techniques.
These objectives have not entirely been met, and adjustments are required to make rules on data and reporting, transparency and systematic internalisers more effective. In addition, the lack of equivalence decisions for non-EU trading venues, particularly in a post-Brexit environment, could result in market fragmentation.
EU policy-makers are now reviewing MIFID II/MIFIR in light of market developments to determine which legislative adjustments are appropriate. ISDA believes the European Commission should adopt a ‘Refit’ approach, rather than a complete re-write of the legislation. This paper explores five key areas where a recalibration of the rules would be appropriate and would further enable safe, efficient derivatives markets.
Click on the attached PDF to read the full paper.
Documents (1) for Review of the MIFID II/MIFIR Framework
Latest
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
ISDA/IIF Responds to the PRA Consultation
On July 30th, ISDA and IIF responded to the PRA consultation (CP10/25) on enhancing banks’ and insurers’ approaches to managing climate-related risks, which proposes updates to the Supervisory Statement 3/19 on climate-related risk management for banks and insurers. ISDA and...
ISDA Board Appoints New Chair
ISDA has announced that its Board of Directors has elected Amy Hong as its new Chair. Ms. Hong is Head of Strategy, Investments and Partnerships in the Global Banking & Markets division at Goldman Sachs, responsible for leading strategic initiatives...
Response on Scope of BMR
On July 28, ISDA and the Global Foreign Exchange Division of the Global Financial Markets Association responded to the European Commission’s (EC) consultation on the need to exempt spot foreign exchange (FX) benchmarks under Article 18a of the EU Benchmarks...