Directive (EU) 2024/790 amending Directive 2014/65/EU on markets in financial instruments

Summary:

Directive (EU) 2024/790 - adopted by the co-legislators on 28 February 2024 - introducing amendments to Directive 2014/65/EU on markets in financial instruments (also known as MiFID II). This is a text with EEA relevance.

Further information:

Directive 2014/65/EU - also known as the second Markets in Financial Instruments Directive (MiFID II) - introduced a legal framework seeking to improve the regulation of trading activities on financial markets as well as enhanced investor protection.

In the framework of the work undertaken to fully implement the Capital Markets Union (CMU), the European Commission identified three priority areas that required reviewing: improving transparency and availability of market data, improving the level-playing field between execution venues and ensuring that European Union's market infrastructures can remain competitive at international level. In a Communication adopted in January 2021, the European Commission confirmed its intention to propose the improvement, simplification and harmonisation of capital markets' transparency. This would be done through the review of the MiFID 2 and MiFIR. Such a reform would include the design and implementation of a consolidated tape, in particular for corporate bond issuances with an aim of increasing the liquidity of secondary trading 3 in euro-denominated debt instruments.

A package of legislative measures adopted on 25 November 2021 included draft laws proposing the review of the two acts. This Directive holds incidental modifications to MiFID II which became necessary to ensure coherence with the MiFIR review tabled simultaneously. The Council of the European Union adopted a general approach to the proposal on 20 December 2022. The European Parliament's relevant committee adopted its negotiating position on 2 March 2023. An informal agreement between the co-legislators on a compromise text for the file was reached on 29 June. This was formally endorsed by Parliament on 16 January 2024 and by the Council on 20 February. The Act was signed by the co-legislators on 28 February 2024 and published in the Official Journal on 8 March 2024.

• Primary Source

Commentary and Analysis

European Consumer Organisation (BEUC): Position Papers, 03/02/2022: Review of the markets in financial instruments regulation / MIFID II - A consumer perspective https://www.beuc.eu/position-papers/review-markets-financial-instruments-regulation-mifid-ii-consumer-perspective

European Parliamentary Research Service (EPRS): Briefing, 23/06/2022: Review of rules on financial market data - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)730337

Centre for European Policy Studies (CEPS): Commentary, 24/06/2022: Taking stock of the MiFID and MiFIR review and what still needs to be done https://www.ceps.eu/ceps-publications/taking-stock-of-the-mifid-and-mifir-review-and-what-still-needs-to-be-done/

EurActiv: Opinion, 17/11/2022: We need to put an urgent stop to conflicts of interests in financial advice https://www.euractiv.com/section/economy-jobs/opinion/we-need-to-put-an-urgent-stop-to-conflicts-of-interests-in-financial-advice/

PricewaterhouseCoopers (PwC Switzerland): Research and Insights, 02/12/2022: Update on MiFID II and MiFIR review https://www.pwc.ch/en/insights/regulation/update-on-MiFIDII-and-MiFIR-review.html

PricewaterhouseCoopers (PwC Switzerland): Research and Insights, 10/01/2023: MiFID II and MiFIR review: agreement reached by Council https://www.pwc.ch/en/insights/regulation/mifidII-and-mifir-review-agreement-reached-by-council.html

European Parliamentary Research Service (EPRS): 21/09/2023: Amendments to MiFID II and MiFIR: The EU's markets in financial instruments https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)733546

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Official

EUR-LEX: COM(2021)726: Proposal for a Directive amending Directive 2014/65/EU on markets in financial instruments https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:726:FIN

EUR-LEX: SWD(2021)346: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:346:FIN

EUR-LEX: SWD(2021)347: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:347:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Amendments to the Markets in Financial Instruments Directive (MiFID 2) (2021/0384(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2021/0384(COD)

European Parliament: Legislative Train Schedule: Amendments to the Markets in Financial Instruments Directive (MiFID) https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-mifid-mifir-review

European Commission: Publications: Capital markets union: Commission adopts package to ensure better data access and revamped investment rules https://ec.europa.eu/info/publications/211125-capital-markets-union-package_en

European Commission: Press Release, 25/11/2021: Capital Markets Union: Commission proposes new measures to boost Europe's capital markets https://ec.europa.eu/commission/presscorner/detail/en/ip_21_6251

European Commission: Questions and Answers on the 2021 Capital Markets Union package (25 November 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_6252

Council of the European Union: Press Release, 20/12/2022: Capital markets union: Council agrees negotiating mandate on proposal to strengthen market transparency https://www.consilium.europa.eu/en/press/press-releases/2022/12/20/capital-markets-union-council-agrees-negotiating-mandate-on-proposal-to-strengthen-market-transparency/

Council of the European Union: Press Release, 29/06/2023: Capital markets union: Council and Parliament agree on proposal to strengthen market data transparency https://www.consilium.europa.eu/en/press/press-releases/2023/06/29/capital-markets-union-council-and-parliament-agree-on-proposal-to-strengthen-market-data-transparency/

Council of the European Union: Press Release, 20/02/2024: MiFIR and MiFID II: Council adopts new rules to strengthen market data transparency https://www.consilium.europa.eu/en/press/press-releases/2024/02/20/mifir-and-mifid-ii-council-adopts-new-rules-to-strengthen-market-data-transparency/

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