The Markets in Financial Instruments Directive (MiFID) took effect on 1st November 2007 after 7 years of regulatory development and consultation. Its aim was to further develop and enhance the 1993 Investment Services Directive (ISD) which was then repealed and replaced by MiFID.
Following a planned review commencing in 2008 and other key events such as the banking and credit crisis, MiFID is being revised and developed to further integrate the European markets. This is frequently referred to as MiFID II/MiFIR and comprises a directive and a regulation.
MiFID II’s entry into force has been delayed by a year to 3rd January 2018. This postpones the application of the whole regulatory framework in order to reduce the risk of market disruption and provide adequate time for all market participants and regulators to be ready for the changes. Legislators continue to work on the required regulatory and implementing technical standards.
MiFID II & MiFIR Timeline
Deadline for investment firms must comply with systematic internaliser obligations.
ESMA will publish EU transaction volumes (for the first time) between 3rd January 2018 to 30th June 2018.
MiFID II and MiFIR are scheduled to enter into force on 3rd January 2018, following a 12 month delay agreed by legislators in June 2016 from the original date of 3rd January 2017.
Deadline of 1st January 2018 for European Commission to review commodities (energy markets) under MiFID.
ESMA due to complete review of transparency waiver applications from trading venues for bonds and derivatives.
Guidelines on the Assessment of the Suitability of the Members of Management Body and Key Function Holders due to be implemented by EU NCAs by mid 2017.
ESMA deadline for receiving applications for transparency waivers from trading venues to NCAs for bonds and derivatives.
ESMA launches a consultation on draft guidelines on certain aspects of the suitablility requirements under MiFID II. The consultation closes on 13th October.
Due to the 12 month delay to MiFID II agreed in June 2016, EU countries now must have transposed the new MiFID II directive into local laws. Implementation was due to take effect 30 months from the entry into force following publication in the Official Journal of the European Union. As MiFID II is a directive, implementation will therefore take longer whilst some provisions of MiFIR will take effect immediately upon publication. However, both pieces of legislation are designed to work together.
Trading venues due to submit applications for transparency waivers to NCAs for bonds and derivatives by this date.
ESMA issues two opinions following their review of transparency waiver applications from third country trading venues for equity and equity-like instruments. ESMA judged that MiFIR’s transparency requirements do not apply to EU participants trading on non-EU trading venues, and that such positions on non-EU venues will not be subject to the MiFID II position limit regime.
ESMA delivers final regulatory technical standards related to the “scope of the non equity tape” under MiFID II to the European Commission, which now has 3 months to decide whether to endorse the RTS.
ESMA due to receive applications for transparency waivers submitted by trading venues to NCAs for equity and equity-like instruments.
ESMA publishes final draft RTS and accompanying final report regarding the methodology for determining and the pre-trade transparency requirements for package orders under MiFID II and MiFIR. The European Commission has 3 months to decide whether to endorse the RTS.
ESMA publishes revised draft ITS on position reporting under MiFID II, updating the format of the reports. The Commission has to endorse the amendments.
Trading venues due to submit applications for transparency waivers to NCAs for equity and equity-like instruments.
| 11th January
ESMA publishes follow up report to its February 2015 Peer Review of 29 European NCAs on their implementation of MiFID’s best execution policies, mainly in regard to retail investors. ESMA reports an improvement on the previously unsatisfactory findings.
|19th – 20th December
ESMA delivers 4 further sets of Guidelines and Recommendations for MiFID II.
ESMA opens a consultation on draft regulatory technical standards regarding transparency rules for package orders under MiFID II. The consultation closes on 3rd January.
ESMA and EBA opens consultation on Guidelines on the Assessment of the Suitability of the Members of Management Body and Key Function Holders. The consultation closes on 28th January.
ESMA issues reporting instructions for the Financial Instrument Reporting Data System (FIRDS); one of ESMA’s project announced in April 2015.
ESMA issues final Guidelines on the implementation of the transaction reporting regime, order record keeping and clock synchronisation.
|3rd – 6th October
ESMA opens 4 consultations on:
|September 2016||20th September
ESMA opens a consultation on a draft regulatory technical standard to implement the trading obligation for derivatives under MiFIR, to close on 21st November.
The European Commission adopts a delegated regulation supporting the “regulatory technical standards for the reporting of transactions to competent authorities”.
The European Commission adopts a delegated regulation supporting the “regulatory technical standards specifying the organisational requirements of investment firms engaged in algorithmic trading “.
The European Commission adopts further regulatory technical standards:
ESMA proposes two amendments to RTS 22, specifying national codes for natural person identifiers to be used in transaction reports under MiFID II.
The delayed application of MiFID II/MiFIR is made official with the publication of the updated text in the Official Journal of the EU.
European Commission adopts a further regulatory technical standard which address volume caps (RTS 3).
European Parliament votes in favour of the proposed year-long delay to MiFID II and MiFIR at plenary. The Council of the EU must now adopt the amended regulation. Subsequently the new deadlines for MiFID II’s transposition and entry into force will need to be published in an updated Level 1 text in the Official Journal of the European Union.
ESMA issues an Opinion in response to the European Commission’s request to amend draft RTS 20 (standards regarding ancillary commodity derivatives trading activities).
ESMA publishes the final draft regulatory technical standards (RTS) on indirect clearing under both MiFIR and EMIR. The European Commission has 3 months to consider the draft RTS for endorsement. If accepted by the Commission, the European Parliament and Council of the EU will then have a non-objection period.
The Council of the EU’s COREPER committee agreed on behalf of the Council with the European Parliament to the proposed year delay to MiFID II’s entry into force.
The European Commission publishes the final version of the delegated act (regulation) for MiFIR. It address “definitions, transparency, portfolio compression and supervisory measures on product intervention and positions”.
Making the year delay to MiFID II’s implementation official progresses, as the Council of the EU’s COREPER committee asks the Council’s Netherlands Presidency to start necessary negotiations with the European Parliament.
ESMA publishes amended RTS 22 that had been originally submitted unintentionally incomplete to the European Commission in September 2015. A decision had previously been expected in December 2015 within 3 months.
ESMA publishes two Opinions regarding proposed amendments to the draft RTS 2 (non-equity transparency requirements) and 21 (commodity derivatives position limits).
The European Commission announces its intention to endorse ESMA’s draft RTS 20 subject to certain changes. RTS 20 is concerned with standards regarding ancillary commodity derivatives trading activities.
The Council of the EU’s COREPER committee agrees (on behalf of the Council) with the European Commission’s proposal to delay the implementation MiFID II and MiFIR by a year.
The European Commission publishes the final version of the second delegated act (regulation) for the Directive. It address “organisational requirements and operating conditions for investment firms”, and provides a long awaited definition of high frequency trading.
The European Commission asks ESMA to review bond liquidity each year to determine if new RTS are required should a bond be liquid enough to be subject to enhanced disclosure rules under MiFID II. This creates the potential for ESMA to produce new RTS each year.
The European Commission announces its intention to endorse two of ESMA’s draft RTSs (2 and 21), subject to certain changes.
The endorsements came after the European Commission’s 3 month scrutiny period ended in December 2015. ESMA now has 6 weeks to amend the two draft RTSs and resubmit as formal Opinons.
The European Parliament’s ECON Committee voted to delay MiFID II’s entry into force by one year from 3rd January 2017 to 3rd January 2018. The decision must be ratified by a vote at the European Parliament’s plenary scheduled for today.
The final version of MiFID II’s first delegated act (directive) for the Directive is published by the European Commission today, delayed from the expected publication in January. It addresses “provisions on investor protection, notably on safeguarding of clients’ funds and financial instruments, product governance and monetary/non-monetary compensation”. The European Parliament and Council of the EU must now approve the act within the next three months.
The European Parliament’s ECON Committee voted to delay MiFID II’s entry into force by one year from 3rd January 2017 to 3rd January 2018. The decision must be ratified by a vote at the European Parliament’s plenary, scheduled today.
ESMA publishes a request to amend a draft MiFIR RTS (22) that had previously been submitted incomplete to the European Commission on 28th September 2015.
On the same day ESMA announces that there is no need to temporarily exclude ETDs from open access requirements under MiFIR rules.
The European Commission asks ESMA to rewrite a regulatory technical standard, to deliver “a more cautious” approach in transparency requirements for illiquid instruments in non-equity markets.
The European Commission’s representative told the European Parliament’s ECON committee that the final version of MiFID II’s delegated acts is unlikely to be published before late March/April; delayed from the original expected publication in January. Needing to take account of final legal details and translating the document into 28 languages were given as reasons for the delay.
The European Commission formally proposes to delay the entry into force of MiFID II by one year to 3rd January 2018. However, this requires the amendment of the level one text, so the proposed delay is subject to agreement from the European Parliament and the Council of the EU.
ESMA sends the second set of technical standards to the European Commission.
ESMA publishes a consultation paper regarding the application of some of the RTS in its guidelines on transaction reporting, reference data, order record keeping & clock synchronisation. The consultation closes on 23rd March, and the guidelines are due in June 2016.
| ESMA publishes 2 sets of Guidelines and Recommendations:
All guidelines come into effect on 3 January 2017, alongside the implementation of MiFID II.
|The European Commission was due to endorse or reject the final RTS submitted by ESMA in September, however no decision has been announced.|
Remaining Level 2 implementing technical standards (ITS) are submitted by ESMA to the European Commission. The Commission has 3 months to consider endorsing the technical standards.
| 30th November
ESMA publishes the Final Report on guidelines on complex debt instruments and structured deposits.
| 28th November
ESMA publishes the final regulatory (RTS) and implementing (ITS) technical standards for MiFID II, and sends to the European Commission for endorsement in the next 3 months. If the Commission approves the technical standards, the European Parliament and the Council of the EU then have period in which to object.
| 27th November
The European Parliament’s ECON committee issues a statement acknowledging readiness to accept a 1 year delay to MiFID II’s entry into force.
| 24th November
The European Commission proposes delaying MiFID II’s entry into force by one year from January 2017 to 2018 in an unofficial document. The Commission is in favour of pushing back on the entry of the entire package and not just isolated parts as the delay is due to ESMA’s IT systems not being ready in time.
| 5th November
ESMA opens a consultation on indirect clearing arrangements under EMIR and MiFIR on 5th November, to close on 17th December.
|ESMA writes to the European Commission to advise of non-submission of draft MiFIR regulatory technical standards (RTS) on the clearing of exchange-traded derivatives (ETDs). This is to ensure consistency with EMIR RTS on the indirect clearing arrangements for OTC derivatives.|
| 28th September
ESMA sends another set of final draft Level 2 regulatory technical standards (RTS) to the European Commission. The European Commission has 3 months to consider whether to endorse the RTS.
|ESMA opens a further consultation regarding the implementing technical standards (ITS) that have not yet been consulted on (trading suspensions, data service providers and derivatives reporting). The consultation closes on 31st October.|
| 7th August
ESMA’s guidelines established in May on the definitions of commodity derivatives and their classification under MiFID I apply to NCAs from today until MiFID II comes into force in 2017.
| 15th July
The European Parliament’s ECON committee holds a scrutiny hearing with ESMA of MiFID II/MiFIR to address a lack of transparency in the RTS drafting process.
| 10th July
Consultation that opened on 23rd April regarding draft guidelines “on certain aspects of MiFID II for the assessment of knowledge and competence” of investment firm’s personnel closes today. Publication of the findings are due in Q4.
| 30th June
On 30th June the final report on draft technical standards for 3rd country firms are delivered to the European Commission, which then has 3 months to review and then endorse or reject the standards.
| 29th June
ESMA originally due to send final draft Level 2 regulatory technical standards (RTS) to the European Commission today (in advance of the 3rd July deadline). However, ESMA holds back and arranges for the deadline to be delayed on 11th May to September to allow time for a legal review of the draft standards and ensure compatibility with the Level 1 text. The European Commission will then have 3 months to review and then endorse or reject the standards.
| 15th June
ESMA’s consultation on draft guidelines on complex debt instruments and structured deposits which opened on 24th March, closes today.
| 23rd May
The Expert Group of the European Securities Commission meets to discuss the delegated acts.
| 11th May
ESMA writes to the European Commission to delay the deadline for delivering the draft technical standards from July to September allow time for a legal review of the draft standards and ensure compatibility with the Level 1 text.
| 6th May
ESMA publishes guidelines on the definitions of commodity derivatives and their classification under MiFID I, to establish a single, consistent application of the definition. The guidelines will apply from 7th August 2015 to NCAs until MiFID II comes into force in 2017.
| 23rd April
On 23rd April ESMA publishes consultation paper regarding draft guidelines “on certain aspects of MiFID II for the assessment of knowledge and competence” of investment firm’s personnel. The consultation closes on 10th July with publication of findings due in Q4.
| 1st April
ESMA announces launch of the instrument reference data project. ESMA will collect trade data from over 300 EU trading venues, MTFs and OTFs, calculate required liquidity and transparency thresholds as required by MiFIR and provide this data in a central database for market participants and supervisors. Project delivery is due in early 2017. Alongside this project ESMA has launched a trade repositories project under EMIR.
| 24th March
ESMA’s Chair presents ESMA’s work on delegated acts and implementing measures for MiFID II and CSDR at an ECON meeting.
ESMA opens a consultation on draft guidelines on complex debt instruments and structured deposits. The consultation closes on 15th June and guidelines are due for publication in Q4 2015.
| 20th March
The consultation period for the Addendum Consultation Paper published in February closes today. ESMA will then send the final report to the European Commission for endorsement.
|The heads of ICAP, LSE Group and Nasdaq published a letter to ESMA in March in which they express fears that the current draft of the RTS will permit loopholes for market participants to avoid the principles of open access expressed in the Level 1 text.|
| 18th March
ESMA publishes a peer review of NCAs’ implementation of the ESMA guidelines for automated trading. The review is mostly positive having found a strong degree of compliance but identifies several areas for improvement.
|Deadline for European Commission to adopt the technical advice ESMA submitted in December 2014 as delegated acts.|
| 2nd March
Closure of ESMA’s public consultation on delegated acts and the regulatory and implementing technical standards that form the Level 2 legislation that opened on 19th December 2014. ESMA’s final advice to the Commission will be finalised following the closure of the consultation period of the Addendum Consultation Paper on 20th March.
| 25th February
ESMA publishes a peer review of 29 European NCAs on their implementation of MiFID’s best execution policies, mainly in regard to retail investors. The report finds little harmony between the NCAs’ approaches, and ESMA makes suggestions for improvement; for example looking beyond price as a means for determining best execution, and for NCAs to allocate more resources towards supervision.
| 19th February
Public hearing of ESMA’s public consultation on delegated acts and the regulatory and implementing technical standards that form the Level 2 legislation that opened on 19th December 2014. In particular transparency requirements for non-equities, liquidity definitions and pre and post-trade transparency mechanisms are discussed.
| 18th February
ESMA releases an Addendum building on the framework set out in the Consultation Paper published on 19th December 2014. The Addendum focuses on transparency issues for credit derivatives, foreign exchange derivatives, contracts for difference and exotic derivatives. This additional consultation closes on 20th March.
| 5th January
ESMA’s consultation on draft guidelines to clarify the definition of derivatives as financial instruments under MiFID II that opened on 29th September 2014 closes today.
| 1st January
The new French HFT rules come into force requiring firms to report the use of automated systems within a month of use to the AMF and record of algorithms and transactions for 5 years. These rules mainly apply to French-issues securities traded by residents, and will therefore not conflict with MiFID II.
| 22nd December
ESMA publishes a preliminary cost-benefit analysis in respect of regulatory and implementing technical standards it proposes for MiFID II in the consultation that opened on 19th December.
| 19th December
ESMA opens a public consultation on delegated acts and the regulatory and implementing technical standards that form the Level 2 legislation. The deadline for responses is 2nd March 2015 with an open hearing on 19th February 2015.
ESMA also sends final technical advice regarding investor protection to the European Commission for consideration in creating delegated acts for MiFID II and MiFIR in advance of the January 2015 deadline (6 months from the entry into force of MiFID II/MiFIR on 2nd July 2014). The Commission made the original request on 23rd April 2014. The Commission now must consider the text in the next 3 months, along with the European Parliament and the Council of the EU which have a right to object.
| 11th December
ESMA publishes a peer review of European NCAs on their supervision of conduct of business rules on “providing fair, clear and not misleading information to clients” under the first iteration of MiFID. ESMA found strong compliance and made recommendations for future work.
|France confirms that their new HFT legislation due to enter into force in 2015 will not conflict with MiFID II’s HFT rules.|
|ESMA opens a consultation on draft guidelines to clarify the definition of derivatives as financial instruments under MiFID II on 29th November 2014. The consultation closes on 5th January.|
ESMA’s public consultation on the implementation of MiFID II and MiFIR closes.
Level 1 MiFID II and MiFIR texts are published in the Official Journal of the EU, and come into force 20 days later. (This is delayed from the original deadline of Q1/Q2 2013). MiFID II and MiFIR will apply from 3rd January 2017 (the original MiFID is repealed from this date). Member states will therefore have an extended 30 months to transpose the directive into national law.
ESMA launches a public consultation on the technical advice and standards required for the implementation of MiFID II and MiFIR that will close on 1st August. The consultation is formed of two parts; a consultation paper on technical advice and a discussion paper on draft technical standards.
Council of the EU announces adoption of the MiFID II and MiFIR Level 1 texts.
European Commission formally requests technical advice from ESMA with regards to establishing the delegated acts required for implementing MiFID II and MiFIR. ESMA’s deadline is 6 months from the entry into force of MiFID II/MiFIR.
Originally expected to be voted on in March, the final Level 1 texts for MiFID II and MiFIR are adopted by the European Parliament at today’s Plenary session. It was politically desirable to reach an agreement on MiFID II/MiFIR by this point in order to avoid reopening negotiations under a new Parliament following the May elections. The Council of the EU is now due to vote on whether to adopt the text following which the texts will be published in the Official Journal of the European Union.
The European Parliament’s ECON Committee approved the final MiFID II and MiFIR Level 1 texts. They must now be approved at Plenary.
| 17th February
Presidency of the Council of the EU issues draft texts of the updated Directive and new Regulation (that have been provisionally agreed with the European Parliament) to the Council’s Permanent Representatives Committee (COREPER II).
Trilogue meeting held regarding technical details of MiFID II.
Trilogue meeting held; agreement on MiFID II reached in principle on Level 1 between the European Parliament, European Commission and Council of the EU. Final Level 1 text still to come.
The Council of the EU’s Lithuanian Presidency had planned to complete MiFID text by the end of December, but this has not been achieved (completion was originally expected in August 2013). Trilogue talks that broke down on 18th December are expected to resume today.
|The Council of the EU’s Lithuanian Presidency had planned to complete MiFID text by the end of December, but this has not been achieved (completion was originally expected in August 2013). Trilogue talks broke down on 18th December and are expected to resume on 14th January.|
|European Parliament scheduled to consider MiFID II and MiFIR during the 9-12 December Plenary session, but due to the failure to agree on a final text, MiFID II/MiFIR was not on the final agenda.|
|Further trilogue meetings scheduled to take place between the European Parliament, Council and Commission.|
|Trilogue meetings scheduled for the 9th and 16th October between the European Parliament, Council and Commission.|
|Trilogue meetings scheduled for the 11th and 25th September between the European Parliament, Council and Commission.|
Trilogue process to work towards agreement on a final Level 1 text begins with a meeting between the Council of the EU, Parliament and Commission. The trilogue process was originally expected to have been completed by the end of August 2013.
|8th July – 9th September
ESMA is holding a Consultation on draft regulatory technical standards (RTS) on information requirements for assessment of acquisitions and increases in holding in investment firms. ESMA must submit draft RTS to the European Commission by 1st January 2014.
First trilogue meeting held to set out the timetable for further trilogue meetings throughout Q3 and Q4. The Council of the EU’s Lithuanian Presidency aims to reach MiFID II agreement by the end of December.
The Irish Presidency of the Council of the EU ends on 30th June and the Lithuanian Presidency begins.
ECOFIN signs off on the General Approaches for MiFID II and MiFIR. This initiates the trilogue process with the European Commission, Parliament and Council. The result of this process will be an agreed final Level 1 text. This is delayed from the original deadline of Q1/Q2 2013.
The Presidency of the Council of the EU publishes proposed General Approaches for MiFID II and MiFIR, dated 18th June.
Compromise negotiations end within the Council of the EU’s COREPER meeting.
ESMA issues guidelines on MiFID compliant remuneration for companies and regulators in the investment sector.
|The Presidency of the Council of the EU publishes further MiFID II/MiFIR compromise proposals on the 4th and 10th June.|
The Presidency of the Council of the EU publishes further MiFID II/MiFIR compromise proposals.
|The Presidency of the Council of the EU publishes further MiFID II compromise proposals on the 9th and 15th April, and a further MiFIR compromise proposal on 9th April.|
|The Presidency of the Council of the EU publishes MiFID II further compromise proposals for MiFID II and MiFIR, dated the 1st and 21st March.|
|The Presidency of the Council of the EU publishes further compromise proposals for MiFID II and MiFIR, dated 4th and 13th February.|
The Presidency of the Council of the EU publishes reviewed compromise proposals for MiFID II and MiFIR.
European Parliament approves MiFID II in a Plenary vote.
European Parliament’s ECON Committee holds first reading of and votes on its amended MiFID II draft on 26th September (delayed from the original scheduled vote on 10th July). Subsequent changes need to be complete for the Plenary reading in October 2012.
ESMA holds consultation on guidelines on MiFID remuneration policies and practices between 17th September and 7th December 2012. Final report and guidelines to be published by Q2 2013.
|ESMA publishes two sets of guidelines aiming to enhance investor protection, relating to the suitability of investment advice and the compliance function. Authorities have 2 months to confirm compliance or their intention to comply, following which after another 60 days the guidelines take effect.|
Presidency Compromise Text released.
|ESMA calls for evidence until June regarding transaction reporting under MiFID.|
|European Economic and Social Committee (EESC) published supportive opinion with comments.|
|ECON releases draft MiFID II report with amendments.|
|ECB publishes supportive opinion on proposals with recommended amendments.|
|December 2011 – February 2012
European Securities and Markets Authority (ESMA) holds consultations regarding guidelines on certain aspects of the MiFID suitability requirements and certain aspects of the MiFID compliance function requirements between 22nd December and 24th February. Final report and guidelines due in Q2 2012.
ESMA publishes final report on guidelines on systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities.
|Council of the EU consulted the EESC on the MiFID II proposal.|
|November 2011 – January 2012
European Parliament holds consultation questionnaire period on the MiFID review to inform the work of ECON.
|Council of the EU requests opinion from European Central Bank (ECB) on the proposals.|
|The draft Directive is read for the first time in European Parliament and referred to its Committee on Economic and Monetary Affairs (ECON).|
| 20th October
The European Commission publishes legislative Level 1 draft proposals for a Directive and Regulation to revise MiFID and transmits to the Council of the EU and European Parliament.
|December 2010 – February 2011|
|European Commission holds consultation to review MiFID.|
|April – August 2010|
|CESR holds two Consultations on advice in the context of the MiFID Review.|
| November 2008 – January 2009
CESR requests evidence on the impact of MiFID on secondary markets functioning and the review of the scope of MiFID.
| November 2008 – December 2008
CESR requests evidence for the review of the scope of the MIFID transaction reporting obligation.
|European Commission requests evidence from market participants for a ‘MiFID Transposition Quality Check’.|
| 1st November
MiFID comes into force across the European Union, replacing the 1993 Investment Services Directive (ISD).
Sourced from European Parliament and European websites, financial and national newspapers and market practitioners.
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