Yesterday evening the European Parliament approved in plenary session the legislative texts that will amend the Markets in Financial Instruments Directive (MiFID). The legislation, in the form of a Directive that recasts MiFID (MiFID II) and a new Regulation (MiFIR) have far reaching consequences for EU investment firms and their third country competitors seeking to do business in Europe.

The European Parliament press release can be viewed here.

Jonathan Herbst, head of financial services regulation at global legal practice, Norton Rose Fulbright comments:

“MiFID II is one of the most important pieces of the post crisis regulatory reform puzzle, no one should underestimate its importance. Not only are there new markets requirements including those relating to position limits, algorithmic trading and transparency but there are also new conduct of business requirements that add up to significant change for firms.”

“MiFID II may prompt firms to consider their group structure particularly in light of the changes to MiFID’s existing exemptions and the new third country requirements.”

The first in our series of online briefing notes on MiFID II and MiFIR will be published shortly.