MiFID II and the new trading landscape
Transforming trading and transparency in EU capital markets
This paper explores the impact of MiFID II/MiFIR on EU capital markets and the opportunities and challenges for investment firms, credit institutions, market infrastructure and other market participants.
Trading and transparency in EU capital markets will be transformed under new rules agreed in the revision to the Markets in Financial Instruments Directive and new Regulation (MiFID II/MiFIR). The reforms have been a long time in the making and are ambitious in scope; they will trigger a shift to a new trading landscape. Many of the new requirements are intended to be positive for the market as a whole through promoting competition, transparency, financial stability and the orderly functioning of markets. However, they will create strategic and operational challenges for individual firms.
This paper produced by Deloitte’s EMEA Centre for Regulatory Strategy explores the impact of MiFID II/MiFIR on EU capital markets and the opportunities and challenges for investment firms, credit institutions, market infrastructure and other market participants. Where and how market participants execute their trades are set to change. Investment firms that provide execution services will need to assess their business models in light of the new rules. Reforms intended to increase transparency and curb speculative trading in commodity derivative markets will mean extensive new disclosure and reporting for firms, requiring significant systems changes and robust data governance.
About the EMEA Centre for Regulatory Strategy
The EMEA Centre for Regulatory Strategy monitors regulatory developments and provides an expert, objective perspective on opportunities and challenges for clients. It utilises Deloitte’s Risk and Regulation, Strategy Consulting and other relevant areas of expertise to understand, influence and advise on regulatory change, with a particular focus on the strategic business model and aggregate impacts.
The Centre is headquartered in London with local representation across Europe. Our core team of dedicated professionals has extensive experience in regulation, through a combination of former regulators and risk and regulation strategy advisors and consultants.