What is directive market?
What Is the Markets in Financial Instruments Directive (MiFID)? The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union.
What is a regulated market under MiFID?
According to MiFID II/MiFIR, a Regulated Market (RM) is a multilateral system that is operated or managed by a market operator and that brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments within the system.
What are financial instruments under MiFID II?
MiFID II extends the scope of requirements under MiFID to more financial instruments. Equities, commodities, debt instruments, futures and options, exchange-traded funds, and currencies all fall under its purview.
What products are in scope for MiFID II?
MiFID II – Products and transactions in scope It covers notably cash equity, fixed income, equity derivatives, commodity derivatives, credit derivatives, emission allowances. Some instruments are only subject to some limited requirements: structured deposits, structured financing transactions.
What is a MiFID II investment firm?
Article 4(1) MiFID II ‘Investment firm’ means any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis.
Which markets are regulated?
Examples of regulatory bodies in the U.S. include the Food and Drug Administration, the Securities and Exchange Commission, and the Environmental Protection Agency.
What are UK regulated markets?
A regulated market is a multilateral system operated by a market operator where the securities traded (shares, bonds etc.) are admitted in accordance with a defined procedure.
What is a financial instrument under MiFID II?
A financial instrument is an asset or evidence of the ownership of an asset, or a contractual agreement between two parties to receive or deliver another financial instrument (Commission Staff Working Document Impact Assessment Accompanying the document Commission Delegated Regulation supplementing Regulation (EU) No …
What financial instruments are in scope for MiFID II?
What instruments does MiFID cover?
UK legislation and rules regulating markets in financial instruments (UK MiFID framework) cover firms that provide services to clients linked to ‘financial instruments’ (generally: shares, bonds, units in collective investment schemes and financial and commodity derivatives), and the venues where those instruments are …
What is the money market instruments?
The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money. It is highly liquid as it has instruments that have a maturity below one year. Most of the money market instruments provide fixed returns.
What are market rules?
Market Rules means the principle of competition pursuant to which parties involved in a transaction are independent and participate on an equal basis in their own interests.
What investments are covered by MiFID II?
Equities, commodities, debt instruments, futures and options, exchange-traded funds, and currencies all fall under its purview. If a product is available in an EU nation, it is covered by MiFID II—even if, say, the trader wishing to buy it is located outside the EU.
Who regulates financial markets in UK?
The Financial Conduct Authority (FCA)
The Financial Conduct Authority (FCA) regulates the financial services industry in the UK. Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers. FCA works with HM Treasury.
Which financial instruments are covered by Mar?
Under MAR, PDMRs are required to notify relevant authorities of any order or transaction undertaken on personal accounts that relate to the issuer or EAMP. This applies to all financial instruments, including, but not limited to, shares, derivatives, and debt instruments.
Are deposits MiFID instruments?
‘Money-market instruments’ under MiFID II mean those classes of instruments which are normally dealt in on the money market, such as treasury bills, certificates of deposit and commercial papers and excluding instruments of payment (Article 4(1)(17) MiFID II).
What does MiFID II cover?
MiFID II improvements The rules governing high-frequency-trading impose a strict set of organisational requirements on investment firms and trading venues, and the provisions regulating the non-discriminatory access to central counterparties (CCPs), trading venues and benchmarks are designed to increase competition.
What is MiFID (Markets in Financial Instruments Directive)?
The Markets in Financial Instruments Directive (MiFID) is a European Union regulatory framework that exerts a higher degree of transparency in the operation of financial markets and standardizes disclosure requirements for investment firms and banks operating in the European Union.
What does MiFID II mean for the financial markets?
1 MiFID II (“Markets in Financial Instruments Directive”): •Updated EU financial markets regulation, effective Jan 2018 •Regulation is primarily designed for uniform and small transaction market (equity-like) •Application to heterogeneous and large transaction market (i.e. fixed income) not straightforward
Is Credit Suisse MiFID II compliant?
Although Credit Suisse is not a financial institution domiciled in the EEA, MiFID II is relevant for us because we: In addition, all Credit Suisse affiliates and branches domiciled within the EEA have to ensure they are compliant with MiFID II.
Are over-the-counter (OTC) derivatives products included in MiFID?
For example, over-the-counter (OTC) derivatives products were not included in MiFID. The 2008 Global Financial Crisis revealed destabilizing effects of the OTC derivatives products, which other than being bespoke in nature to match the end-users’ needs, are traded on a bilateral basis.