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.

RTS27 MiFID II execution quality report: Under MiFID II, SMBC Nikko Capital Markets Limited (CML) is required to take all sufficient steps to obtain the best possible result for clients when executing their orders. Moreover, as a liquidity provider, CML is under an obligation to publish quarterly reports on the quality of execution of transactions ("RTS 27 Report"). The RTS 27 Report includes details about the price, costs, speed, and likelihood of execution for each type of financial instrument in respect of which we act as a liquidity provider.

The RTS 27 Reports for the period covering 1 January to 31 March 2018 are available below and have been prepared on a best efforts basis. CML reserves the right to amend the reports if deemed necessary. For further information, please contact MiFIDIIProject@smbcnikko-cm.com