MiFID review
Short selling
MiFID review

MiFID review

The European Commission’s review of the Markets in Financial Instruments Directive (MiFID) is one of the most important regulatory initiatives that is likely to affect the cross border securities markets.

The Commission published a consultation paper on its review of MiFID in December 2010, to which ICMA has responded on behalf of its members.

2 February 2011
ICMA’s response the Commission’s MIFID Review Consultation

10 March 2011
ICMA and a number of other associations wrote to Commissioner Barnier, expressing support for the principle of broadening investors’ choice. The signatories believe that preserving investors’ freedom to choose where to execute trades is entirely compatible with the goals of ensuring transparency, strong risk management and operational efficiency.


The Markets in Financial Instruments Directive (2004/39/EC) (‘MiFID’) is the successor to the Investment Services Directive. The objective of MiFID is to make it easier for investment firms to undertake investment business across the EU, whether on a cross-border basis or through branches. MiFID was implemented on 1 November 2007.

MiFID Connect

MIFID Connect is a joint project involving 11 trade associations including ICMA which is designed to support member firms and simplify the UK implementation of the Markets in Financial Instruments Directive (MiFID).

Click here to go to the MiFID Connect website.

FSA letters on waivers

8 March 2007
Managing waivers in the transition to NEWCOB’

8 March 2007
Waivers letter enclosure re NEWCOB

Related documents:

CESR and national regulators (including the FSA and the AMF) have been consulting the financial services industry about aspects of the implementation of MiFID. Jointly with other associations, ICMA has been involved in preparing the following responses, which can be accessed below.

1 August 2014
ICMA responded to an ESMA Consultation Paper on MiFID II/MiFIR

1 August 2014
ICMA responded to an ESMA Discussion Paper on MiFID II/MiFIR

25 September 2013
ICMA and a broad EU financial services representation wrote to the European Parliament, the European Council and the European Commission on common principles on MiFID II. The stakeholders represented highlighted common views that they share on important issues through this letter

4 August 2010

Joint response to CESR Technical Advice to the European Commission in the context of the MiFID Review – Client Categorisation

22 December 2009
Joint response to CESR’s consultation paper “Inducements: Good and poor practices” (CESR/09-958)

5 December 2008
Joint response to FSA CP 08/16 Quarterly Consultation CH 5 Transaction Reporting Rules: Transactions on over-the-counter derivatives  

1 October 2008
The call for evidence received on 15th July

1 October 2008
ICMA response to call for evidence

21 November 2007
CESR's Public Consulation on the CESR MIFID Level 3 Expert Group Draft Work Plan for Q4/2007 - 2008

27 April 2007
Joint Associations' reponse to CESR's second consultation on Inducements under MiFID

21 March 2007
Letter from Commissioner McCreevy to ICMA on supervision of branches under MiFID

15 March 2007
Joint response on MiFID best execution

2 March 2007
Joint response to CESR on transaction reporting

23 February 2007
Joint follow-up response to FSA Consultation papers 06/19 and 06/20

9 February 2007
Joint response to CESR's consultation on inducements under MiFID (06-687)

9 February 2007
Joint response to CESR's consultation on the passport under MiFID (06-669)

15 January 2007
Joint Response to CESR CP Data Standards

18 December 2006
Response to CESR consultation on publication and consolidation of MiFID market transparency

28 November 2006
Joint Associations' initial response to the FSA’s Consultation Paper on Reforming Conduct of Business Regulation (CP06/19)

27 November 2006
Joint Associations' response to CESR on minimum records

31 October 2006
Joint Associations' response to FSA's CP06/14

31 October 2006
Joint Associations' response to AMF's consultation on best execution

26 September 2006
MIFID Client Classification Response

12 September 2006
Response sent to CESR on Consultation on MIFID Level 3 work

14 July 2006
ICMA, ISDA and TBMA joint response to FSA Discussion Paper 'Implementing MiFID's Best Execution Requirements'

Appendix to Annex B


Short selling

There has been increasing regulatory attention to short selling since the collapse of Lehman Brothers.

10 March 2012
AFME, ICMA, ISLA and ISDA joint input for ESMA Consultation Paper on possible Delegated Acts concerning the regulation on short selling and certain aspects of credit default swaps ((EU) No XX/2012)

13 February 2012
AFME, ICMA, ISLA and ISDA joint input for ESMA Consultation Paper on draft technical standards on the Regulation (EU) xxxx/2012 of the European Parliament and of the Council on short selling and certain aspects of credit default swaps
13 January 2011
On 18 May 2010, Germany announced a ban on short-selling transactions in certain shares, naked short selling transactions in debt securities issued by EU Member States whose legal currency is the euro as well as Credit Default Swaps (CDS) to the extent that at least one reference liability is a liability of a euro zone country and to the extent that they do not serve as hedging instruments against credit default risks (naked CDS).  This ban was subsequently revoked with effect from 27 July 2010 due to the entering into force of the Act on the Prevention of Improper Securities and Derivatives Transactions (Gesetz zur Vorbeugung gegen missbräuchliche Wertpapier- und Derivategeschäfte) on 27 July 2010 which contains prohibitory regulations in this regard. Therefore, the General Decrees no longer need to be upheld.  However, the FAQs that the Bafin published pursuant to the ban that came into effect on 18 May 2010 are still in effect and can be accessed here.

The European Commission has also been considering short selling.  In June, the European Commission published a consultation paper to which ICMA submitted two responses:

(1) Secondary Markets response
(2) ERC response 1*

The European Commission subsequently published a draft Short Selling Regulation and Regulatory Impact Assessment in September.  This draft is currently being considered by the European Parliament and Council.

In this context, the ICMA European Repo Council wrote to Mr. Pascal Canfin, MEP on 13 January 2011 to outline the concerns with the way Article 13 of the proposed Regulation was drafted.  Article 13 of the proposed Regulation requires provisions be put in place for the automatic buy-in of securities and imposition of daily payments in the case of failure to deliver securities within the prescribed time period.

 1See also European repo market white paper on short-selling and settlement failures page for further updates.

*On 4 December 2015, the name of the European Repo Council (ERC) was changed to the European Repo and Collateral Council (ERCC).

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