The European Council has reached a compromise agreement with the European Parliament on new rules on the provision of services for investments in financial instruments and on the operation of regulated financial markets. The MiFID proposals are aimed at promoting the integration, competitiveness and efficiency of EU financial markets. They set out to amend and replace existing rules for markets in financial instruments by two new legislative instruments:

  • a regulation improving transparency and competition of trading activities by limiting the use of waivers on disclosure requirements and providing for non-discriminatory access to trading venues and central counterparties (CCPs) for financial instruments and requiring derivatives to be traded on organised venues;
  • a directive amending rules on the authorisation and organisational requirements for providers of investment services and on investor protection.

The Directive also introduces a new type of trading venue, the organised trading facility (OTF).