EU lawmakers move into the end-game for the MiFIR-D review process
European lawmakers are making significant progress toward completing their review of the flagship legislative file for securities trading, the Markets in Financial Instruments Directive and Regulation (MiFIR-D). As part of a broader push to re-vitalise the European Capital Markets Union (CMU) initiative, this review is intended to provide a number of targeted fixes to the MiFIR-D regime that has been in place since 2018.
Following the release of initial proposals from the European Commission (EC) in November 2021, the 27 EU member states agreed their common negotiating stance on December 22, 2022. The European Parliament is also close to agreeing its position on the file, at which point the Parliament, member states and EC will negotiate a final set of amended rules.
Among other things, discussions in the Parliament are exploring the appropriate arrangements for a consolidated tape regime in each asset class and simplification to the pre- and post-trade transparency rules. There is also lively discussion about whether practices such as Payment for Order Flow should be restricted.
Though still some time off, as the updated rules are not expected to be finalised until the second half of 2023 and only then come into force in 2024-2025, market participants can expect significant changes to the rules and processes governing the European trading landscape over the coming years.
Bloomberg
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