MiFIR and MiFID II are regulatory frameworks implemented in the European Union (EU) to govern financial markets and provide investor protection. They are part of a broader set of regulations known as the Markets in Financial Instruments Directive (MiFID) and Regulation (MiFIR) regime.
MiFID (Markets in Financial Instruments Directive): MiFID was introduced in 2007 to create a single market for financial services within the EU. It aimed to harmonise regulations across member states and enhance competition by enabling investment firms to provide services across borders. MiFID established rules for investment firms, regulated markets, and the trading of financial instruments.
MiFID II (Markets in Financial Instruments Directive II): MiFID II, along with MiFIR, is an updated version of MiFID, which came into effect on January 3, 2018. It introduced more stringent rules and requirements to strengthen investor protection, improve transparency, and increase the efficiency and stability of financial markets, also expanding the scope and requirements related to bond trading.
The overall goal of MiFID II/R is to improve transparency, investor protection, and the integrity of financial markets within the EU.
In 2022, the EU began the process of reviewing MiFID II/R (the “MiFID II & MiFIR Review”), which will introduce revisions to the regulatory framework. This included the establishment of a consolidated tape (CT) for bond markets and a revised post-trade transparency regime.
Meanwhile, in 2022, the UK began the process of reviewing the application of MiFID II/R in the United Kingdom as part of the Wholesale Markets Review.
Papers, consultation responses and news
10 January 2025
ICMA MiFID WG response to FCA Discussion Paper "The Future of the SI regime" under FCA PS 24/14
16 October 2024
ICMA response to the ESMA MiFID II consultation on ‘Technical Standards specifying the criteria for establishing and assessing the effectiveness of investment firms’ order execution policies’
3 October 2024
Joint association statement on MiFIR RTS 2 post-trade deferrals for bonds
29 August 2024
ICMA response to the ESMA MiFIR Review Consultation Package on Technical Standards related to Consolidated Tape Providers and DRSPs and assessment criteria for the CTP selection procedure
28 August 2024
ICMA response to the ESMA MiFIR Review Consultation on the draft RTS on Reasonable Commercial Basis
15 September 2023
ICMA response to the FCA Consultation Paper on The Framework for a Consolidated Tape
5 July 2023
UK FCA launches consultation on a consolidated tape for bonds
5 July 2023
UK FCA publishes guidance on the Trading Venue Perimeter
3 July 2023
Political agreement reached on EU MiFIR Review
6 March 2024
ICMA response to the UK FCA Consulta on CP23/32: Improving transparency for bond and derivatives markets
14 February 2023
ICMA shares summary of co-legislator positions with ICMA comments
2 February 2023
ESMA publishes its Final Report on the Trading Venue Perimeter
24 November 2022
ICMA has responded to the UK FCA’s Consultation Paper on the Trading Venue Perimeter
29 April 2022
ICMA has responded to ESMA’s consultation on trading venue perimeter
22 March 2022
ICMA feedback for the European Commission - proposed amended text
15 December 2021
ICMA response to ESMA Consultation Paper on Review of the MiFID II framework on best execution reports
8 December 2021
ICMA proposal for a new post-trade transparency regime for the EU corporate bond market
1 October 2021
ICMA response to ESMA's consultation on the RTS 1 and RTS 2 Review
24 September 2021
ICMA response to HM Treasury Wholesale Markets Review
10 June 2021
ICMA response to ESMA consultation paper on the transparency regime for non-equity instruments and the trading obligations for derivatives MiFID II/ MiFIR review report
12 March 2021
ICMA response to ESMA consultation paper on algo trading
8 January 2021
ICMA response to ESMA Consultation Paper on Guidelines on the MiFID II/ MiFIR obligations on market data
25 November 2020
ICMA response to ESMA's consultation paper on MiFID II/ MiFIR review on the functioning of Organised Trading Facilities (OTF)
20 November 2020
ICMA response to ESMA's MiFIR review report on the obligations to report transactions and reference data
12 June 2020
ICMA response to ESMA's consultation paper on MiFID II/ MiFIR review report on the transparency regime for non-equity and the trading obligations for derivatives
15 May 2020
ICMA response to European Commission MiFID II/R review consultation paper
Secondary bond markets and fintech can be found on the following pages:
MiFID II Review – general questions in relation to bond markets – p. 8 – 12
Consolidated tape for EU bond markets – p. 14 – 27
Post-trade transparency in bond markets – p. 35
Best execution in bond markets – p. 57 – 61
Research unbundling for bond markets – p. 61 – 69
Multilateral systems in bond markets – p. 80 – 81
Non-discriminatory access in relation to bond markets – p. 84 – 86
Digitalisation and new technologies in relation to bond markets – p. 87 - 90
April 2020
EU Consolidated Tape for Bond Markets- Final report for the European Commission (ICMA MiFID II Consolidated Tape Taskforce)
March 2020
Joint Trade Association letter to EC and ESMA regarding MIFID Consultations
March 2020
ICMA response to ESMA’s consultation paper on the MiFIR report on Systematic Internalisers in non-equity instruments
Legislation and related documents
Level 1:
Markets in Financial Instruments (MiFID II) - Directive 2014/65/EU
Markets in Financial Instruments (MiFIR) - Regulation (EU) No 600/2014
Level 2:
Overview and state of play of RTS and ITS relating to MiFID/MiFIR
ESMA – Policy activities related to MiFID (II) and MiFIR
RTS 2: Transparency requirements for trading venues and investment firms in respect of bonds, structured finance products, emission allowances and derivatives
Annex to RTS 2
RTS 27: Best Execution – Reporting criteria
Annex to RTS 27
RTS 28: Best Execution – Quality of execution
Annex to RTS 28
Level 3:
MiFID (II) - Investor Protection:
Q&A on MiFID (II) and Investor Protection
MiFID (II) MiFIR and Secondary Markets:
Q&A on MiFID II and MiFIR transparency topics
Q&A on MiFIR data reporting
Q&A on MiFID II and MiFIR market structures topics
Notes & Briefings:
ESMA Briefing on the Legal Entity Identifier (LEI) – 9 October 2017 (ESMA70-145-238)
ESMA Briefing - MiFID II technical data reporting requirements - 16 January 2017 (ESMA00-6-265)
ESMA Note on MIFID/MIFIR implementation: Delays in the go-live date of certain MIFID provisions - 17 November 2015 (ESMA/2015/1514)
Resources related to transparency calculations and liquidity assessments of bonds:
ESMA Financial Instruments Transparency System (FITRS) (applicable since 16 May 2018)
ESMA LIS and SSTI thresholds for bonds
ESMA Transitional Transparency Calculations (applicable until 15 May 2018)
ESMA FAQ document related to MiFID II Transitional Transparency Calculations (applicable until 15 May 2018)
ESMA List of bonds deemed liquid or illiquid (applicable until 15 May 2018) [for other asset classes, ESMA only includes the instruments that are liquid – for bonds illiquid instruments are also listed]
ESMA List of credit derivatives deemed liquid (applicable until 15 May 2018)
ESMA List of interest rate derivatives deemed liquid (applicable until 15 May 2018)
See also:
Archive
Contacts:
Andy Hill
Managing Director, Co-Head of Market Practice & Regulatory Policy; secretary to the Secondary Market Practices Committee and also responsible for overseeing repo policy; Member of the ICMA Executive Committe
Direct line: +44 20 7213 0335
Nina Suhaib-Wolf
Director, Market Practice and Regulatory Policy
Direct line: +44 20 7213 0318
