What is MiFID II in simple terms?
MiFID II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry, especially after the 2008 financial crisis.
What is the difference between MiFID I and MiFID II?
The main difference between MiFID and MiFIR is that the directive (MiFID) sets out the goals that EU member states should strive to meet, whereas the regulation (MiFIR) imposes rules that all countries must follow. MiFID II is a legislative act that sets out goals that all countries in the EU need to achieve.
Does MiFID 2 apply in the UK?
MiFID II applies to investment firms and credit institutions like AIB when they undertake investment activities and services in respect of financial instruments. AIB UK and the AIB London Branch will be subject to UK MiFID II. MiFID II and UK MiFID II apply to the investment activities and services undertaken by CTS.
What transaction types are reportable under MiFIR?
Stock CFDs of shares trading on EEA trading venues (example BP, BMW CFDs) Stock Index CFDs of based on Equity Index Futures trading on EEA trading venues (example DAX, CAC and FTSE CFDs) Fixed Income CFDs based on Government Bond futures trading on EEA trading venues (example GILT and BOBL futures)
What are reportable instruments?
First published: 09/06/2016 Last updated: 31/12/2020. To be reportable an instrument must be considered a financial instrument specified in Part 1 of Schedule 2 to the Regulated Activities Order and be admitted to trading or traded on a trading venue within scope of the UK MiFID framework.
What have been the main changes as we moved from MiFID I to MiFID II?
Extended market transparency and transaction reporting Key system changes will be required to capture additional reporting requirements (including new instruments). Static data may require cleansing in order to ensure additional information is reported correctly.
What is the difference between MiFIR and MiFID?
Who is responsible for MiFIR reporting?
Transaction reporting is to be made to the firm’s home competent authority and must be made by the firm or by its approved reporting mechanism or by the trading venue operator. 6.
What is the purpose of the MiFID II inducements program?
It will assist firms that are subject to MiFID II understand how the inducement related obligations interact and apply both to themselves and to their counterparties. The following MiFID II requirements are relevant to the provision and receipt of inducements.
What are the MiFID II inducement rules for hospitality?
From the buy-side firm’s perspective, MiFID II inducement rules will apply; however, reasonable de minimus value hospitality is expressly provided for as an acceptable minor non-monetary benefit.
Does MiFID II apply to buy-side firms?
However, MiFID II contains an express carve out if the buy-side firm pays for the research from its own resources or a separate research payment account. If not, the buy-side firm must instead ensure receipt of research complies with the general inducements rule.
What are the main features of MiFID II?
• Inducement regime MiFID II contains: (i) a general inducements rule, under which firms must not pay or receive third-party benefits unless certain conditions are met, and (ii) a specific prohibition on thirdparty – benefits, other than certain minor nonmonetary benefits-, which applies only to firms providing