MiFID II at SMBC Nikko Capital Markets Limited.


The Markets in Financial Instruments Regulation (“MIFIR”) and the Markets in Financial Instruments Directive (“MIFID”), together “MIFID II”, enter into application on 3 January 2018.

MiFID II seeks to provide a European-wide legislative framework for regulating the operation of financial markets in the EU. It represents a major overhaul of the existing law, building on and extending the scope of the first Markets in Financial Instruments Directive, which originally came into force in November 2007.

In broad terms, MiFID II is concerned with the framework of trading venues/structures in which financial instruments are traded, whereas MiFIR focuses on regulating the operation of those trading venues/structures, looking to processes, systems and governance measures adopted by market participants and to their future supervision.

The Commission set out four objectives for the revised legislation:

  • strengthen investor protection
  • reduce the risks of a disorderly market
  • reduce systemic risks, and
  • increase the efficiency of financial markets and reduce unnecessary costs for participants

Below are a number of important informational and legal documents that we recommend you to read carefully.