How does MiFID 2 and MiFIR aim to make the financial markets more resilient and efficient?

Benoît DuvieusartPartner, duvieusart ebel, avocats associés

Directive 2014/65/EU and Regulation 600/2014 on Markets in Financial Instruments (“MiFID 2” and “MiFIR”) became applicable on 3 January 2018.

MiFID 2 and MiFIR aim at making financial markets more resilient and efficient by:

  • –  extending market transparency and transaction reporting;

  • –  protecting investors (one of the main changes will be the ban on inducements for portfolio managers

    and independent advisers);

  • –  facilitating access to capital for small and medium-sized enterprises;

  • –  providing a harmonized regime for granting access to EU markets for firms from third countries;

  • –  strengthening and harmonizing administrative sanctions and effective cooperation between the

    relevant competent authorities;

  • –  improving competition in trading and clearing of financial instruments.

    On 29 December 2017, the CSSF published press release 17/47 on the application of MiFID 2/MiFIR.
    MiFID 2 and MiFIR shall be implemented into Luxembourg law by bill of law 7157 and by a draft Grand Ducal regulation.