European financial market regulation
 Regulation (EU) No. 600/2014 |
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|---|---|
| Title: | Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No. 648/2012 |
| Designation: (not official) |
European financial market regulation |
| Scope: | EEA |
| Basis: | TFEU , in particular Art. 114 and Art. 294 |
| Procedure overview: |
European Commission European Parliament IPEX Wiki |
| Date of issue: | May 15, 2014 |
| Release date: | June 12, 2014 |
| Come into effect: | 2nd July 2014 |
| To be used from: | January 3, 2018 |
| Reference: | OJ L 173 of June 12, 2014, pp. 84-148 |
| Full text |
Consolidated version (not official) basic version |
| Regulation has entered into force and is applicable. | |
| Please note the information on the current version of legal acts of the European Union ! | |
The European financial market regulation ( English Markets in Financial Instruments Regulation, MiFIR ) is a European Union regulation for regulation of trading systems in the financial markets. The ordinance, which came into force in 2018, is intended to increase transparency in trading financial instruments and thus reduce the risk of future financial crises .
background
In their preamble to the regulation, the European Parliament and the Council of the European Union refer to the following background:
“The financial crisis has exposed a lack of transparency in financial markets that can have harmful socio-economic effects. Increasing transparency is one of the common principles in strengthening the financial system […]. In order to improve the transparency and functioning of the internal market for financial instruments, a new framework should be created which lays down uniform requirements for the transparency of transactions in the markets for financial instruments. This framework should provide comprehensive rules for a wide range of financial instruments. It should supplement the requirements laid down in Directive 2004/39 / EC of the European Parliament and of the Council for the transparency of orders and transactions in the equity sector. "
Come into effect
For this purpose, the European Financial Market Regulation was issued on July 2, 2014. Originally it was planned to come into force on January 3, 2017, this period was extended by one year, so that the regulation has now come into force on January 3, 2018.
content
This regulation is intended to regulate the following points, among others:
- Definitions of the regulated market and the multilateral trading facility (MTF) should be clarified and closely related to one another to reflect the fact that both effectively perform the organized trading function.
- To cater to the financial markets of the Union for greater transparency and efficiency in terms of a level playing field for the various multilateral trading venues, it is necessary for a new category of trading venues, namely the organized trading system ( Organized trading facility , OTF) for bonds , structured Introduce financial products , carbon credits and derivatives and ensure that it is adequately regulated and that non-discriminatory rules apply to access to this system.
- All organized trading should take place at regulated trading venues and be completely transparent in both the pre- trading and post-trading phases. Therefore, appropriately balanced transparency requirements must apply to all types of trading venues and to all financial instruments traded there.
- In order to ensure that more trading movements take place on regulated trading venues and via systematic internalisers , this Regulation should introduce a trading obligation for investment firms for shares admitted to trading on a regulated market or traded on a trading venue. This obliges investment firms to conduct all trading transactions, both for their own account and for the execution of client orders, via a regulated market, an MTF, a systematic internaliser or an equivalent third-country trading venue.
- Since trading in share certificates , exchange-traded funds , certificates and comparable financial instruments - not admitted to trading on a regulated market - takes place largely in the same way and serves an almost identical economic purpose as trading in shares that are admitted to trading on a regulated market , the scope of the transparency rules applicable to shares admitted to trading on regulated markets should also be extended to the financial instruments mentioned.
- The financial crisis has exposed certain weaknesses in the way in which information about trading opportunities and prices of financial instruments other than stocks is made available to market participants, which is why pre-trade and post-trade transparency requirements are to be introduced.
As a result, market data should be easily accessible to users, in the most disaggregated form possible, so that investors and data service providers can fall back on largely customized data solutions. Therefore, pre-trade and post-trade transparency data should be published in an "unbundled" form so that the costs of acquiring data are reduced for market participants.
Significance for companies
This regulation obliges financial institutions to notify the national supervisory authority of all transactions that they carry out on behalf of third parties. Since the client's LEI code must also be specified, if he is a legal person , all of the relevant organizations are obliged to apply for an LEI code at one of the national registration authorities.
This means that all companies entered in the commercial register are now obliged to apply for an LEI code if they have a deposit with a financial institution and want to continue to use financial instruments - even if this only involves temporarily parking free funds in money market funds .