The European Commission initiated a consultation to review the Markets in Financial Instruments Directive 2004/39/EU (MiFID I) and went on to publish a formal legislative proposal to amend MiFID I (including a proposal for a new Directive and a Regulation) on 20 October 2011. Although MiFID I is widely regarded to have successfully achieved its main objectives (by increasing investor protection and competition), the vulnerability of financial markets after the financial crisis and the significant market developments since the implementation of MiFID I in 2007 prompted further reform.
- an overhaul of market structure, including the introduction of a new multilateral, discretionary trading venue for non-equities, the Organised Trading Facility (OTF)
- increased transparency and transaction reporting requirements
- heightened conduct of business rules and requirements as well as supervisory enforcement powers
- much greater regulation of commodities business including position limits and reporting
- new rules for “third country” (i.e. non-EU) firms accessing EU markets
MiFID II and MiFIR were published in the Official Journal of the European Union on 12 June 2014. Originally scheduled to apply from 3 January 2017, their implementation has been delayed by one year to 3 January 2018 under the MiFID II Amending Directive and MiFIR Amending Regulation published in the Official Journal on 30 June 2016.
The Luxembourg implementing act is currently still pending before parliament. However, the Luxembourg financial sector supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF), has clarified in a press release dated 29 December 2017 that, even in the absence of an implementing act in Luxembourg, in-scope entities should apply the requirements arising out of the MiFID II framework.
The ABBL has been and still is heavily involved in the preparation process of the MiFID II framework. Through dedicated working groups, the ABBL assists its members in every aspect of implementing the MiFID II framework, including through the drafting of the ABBL MiFID II Handbook setting out industry guidance with regard to interpreting that various MiFID II provisions and themes.