EP has approved, almost unanimously, the Ferber Report on the proposals for a Regulation and Directive amending the Markets in Financial Instruments Directive (MiFID 2 and MiFIR). Key points it highlighted are:

  • it is critical that all trading facilities are subject to rules;
  • there should be clear rules on high frequency trading;
  • investment firms must act fairly, honestly and in clients' best interests;
  • firms selling investment products should not remunerate staff or evaluate their performance in a way that might create conflicts between their interests and those of clients;
  • all market players and trading venue operators must have transparent rules and procedures for executing orders efficiently and deciding what instruments their systems will trade, and have proper business continuity plans;
  • organised trading facilities (OTFs) should be reserved for non-equities;
  • all orders must be valid for at least 500 milliseconds;
  • trading venues must be able to cope with surges in order and market stresses and must have circuit breakers that can suspend trading if necessary; and
  • there should be thresholds on maximum net positions on commodity derivatives trading.

(Source: EP Votes Through MiFID 2)