Trading and Venues
Trading and Venues
MiFID II and MiFIR ensure fairer, safer and more efficient markets and facilitate greater transparency for all participants.
MiFID II and MiFIR have been complemented by numerous Delegated Acts, Regulatory Technical Standards (RTS), Implementing Technical Standards (ITS), as well as Guidelines, Opinions and Q&As:
The rules contained in the MIFID II / MIFIR package extend to bond and derivative markets the principles of organisation and transparency prevailing for equities under MIFID I. They also reduce systemic risk and guarantee financial market stability, in particular by reducing over the counter (OTC) trading and moving it to regulated one, i.e. trading on Regulated Markets, MTFs, OTFs and Systematic Internalisers.
Fairer, safer and more efficient markets
- fair competition between the different trading platforms, in particular by harmonising the organisational requirements among them and by requiring non-discriminatory access to trading venues, CCPs and benchmarks;
- financial stability, thanks to imposing a strict set of organisational requirements on investment firms and trading venues, and in particular introducing the rules governing high-frequency-trading;
- fair access to market data, thanks to rules regarding reasonable commercial basis of the market data provision and free access to it on delayed basis.
Greater transparency
- a liquidity assessment and thresholds for pre-trade and post-trade transparency regimes for wide range of equity and non-equity financial instruments;
- a trading obligation for shares (STO) and certain derivatives (DTO) to be traded only on regulated platforms and, in the case of shares, systematic internalisers, instead of OTC;
- a double volume cap (DVC) mechanism to limit dark trading and reshape the use of waivers for shares and equity-like instruments.