On 15 April 2014, the European Parliament adopted legislation that will replace the current Markets in Financial Instruments Directive ("MiFID"). The new legislation comprises (a) a revised directive which is an amendment of MiFID covering market structure, scope of exemptions, organizational and conduct of business requirements for investment firms and trading venues, powers of national regulators, sanctions and rules for non-EU firms operating through a branch; and (b) a new regulation ("MiFIR") which set out requirements for trade transparency, mandatory trading of derivatives, the provision of services by non-EU firms without an EU branch and confers a number of new powers on European regulators, the European Securities and Markets Authority and the EBA.
Following approval by the Council of the European Union, MiFID II and MiFIR will be published in the Official Journal of the European Union, currently expected in June 2014. The European Commission must then develop Level 2 legislation implementing certain provisions of the legislation and member states will need to transpose MiFID II into national law. Under the current timetable, MiFID II is expected to enter into force by the end of 2016.
The European Parliament's press release is available at: http://www.europarl.europa.eu/news/en/news-room/content/20140411IPR43438/html/MEPs-vote-laws-to-regulate-financial-marketsand-curb-high-frequency-trading .
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