Background
Trading and transparency in EU capital markets will be transformed under new rules agreed in the revision to the Markets in Financial Instruments Directive and new Regulation (MiFID II/MiFIR). The reforms have been a long time in the making and are ambitious in scope; they will trigger a shift to a new trading landscape. Many of the new requirements are intended to be positive for the market as a whole through promoting competition, transparency, financial stability and the orderly functioning of markets. However, they will create strategic and operational challenges for individual firms.
This paper produced by Deloitte's EMEA Centre for Regulatory Strategy explores the impact of MiFID II/MiFIR on EU capital markets and the opportunities and challenges for investment firms, credit institutions, market infrastructure and other market participants. Where and how market participants execute their trades are set to change. Investment firms that provide execution services will need to assess their business models in light of the new rules. Reforms intended to increase transparency and curb speculative trading in commodity derivative markets will mean extensive new disclosure and reporting for firms, requiring significant systems changes and robust data governance.
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MiFID II and the new trading landscape - Transforming trading and transparency in EU capital markets (PDF)
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