The key objectives of the updated directive (MiFID II) and the accompanying regulation (MiFIR) are:
The updated directive applies to a broader range of financial industry players providing investment services including investment banks, portfolio managers, brokers and market makers. Whilst the sell side will have to adopt measures for compliance, obligations also extend to the buy side and intermediaries such as inter-dealer brokers and market makers.
The range of asset classes and products within the legislation’s scope is broad and includes cash and derivative products in fixed income, FX, equities and commodities.