ROLE Euro Trade Commission , having completed the technical standards and technical advices, has contributed to the smooth implementation of MiFID II/MIFIR by issuing Q&As, and Guidelines, which will be updated when necessary.
On an ongoing basis, Euro Trade Commission will have a number of duties including:
- On-going publication of information on its website (e.g. reference data regarding new trading standarts and requirements for financial brokers);
- Production of reports in cooperation with the European Commission (e.g. on the functioning of OTF or SME growth markets),
- Creation of registers of trading venues, data reporting service providers investment firms;
- Monitoring of how certain provisions are implemented (e.g. implementation of position limits or use of pre-trade transparency waivers), and specific product intervention powers where Euro Trade Commission and national supervisors are able to temporarily prohibit or restrict the marketing, distribution or sale of a financial instrument or a type of financial activity or practice where certain conditions are met.
- Mediating any conflict of interests between financial brokers and their clients according to trading conditions and European Regulation Standarts;
- Providing an non risk mechanism for trading accounts by creating an Compensation Fund meaned to protect clients from bankruptcy or insolvent status of financial institution registered;
- Monitoring the Anti Money Laundering Policy of the Registrants Members in order to maintain European Regulation Standarts;
- Publishing a black-list of the non regulated or scam service providers in the trading market.
Euro Trade Commission is taking all measures to ensure that clients will receive a MIFID standart of financial service during their collaboration with a registered broker.
MiFID is the Markets in Financial Instruments Directive (2004/39/EC). It has been applicable across the European Union since November 2007. It is a cornerstone of the EU’s regulation of financial markets seeking to improve their competitiveness by creating a single market for investment services and activities and to ensure a high degree of harmonised protection for investors in financial instruments.
MiFID sets out:
- Conduct of business and organisational requirements for investment firms;
- Authorisation requirements for regulated markets;
- Regulatory reporting to avoid market abuse;
- Trade transparency obligation for shares;
- Rules on the admission of financial instruments to trading.
On 20 October 2011, the European Commission adopted a legislative proposal for the revision of MiFID which took the form of a revised Directive and a new Regulation. After more than two years of debate, the Directive on Markets in Financial Instruments repealing Directive 2004/39/EC and the Regulation on Markets in Financial Instruments, commonly referred to as MiFID II and MiFIR, were adopted by the European Parliament and the Council of the European Union. They were published in the EU Official Journal on 12 June 2014.
MIFID II IMPROVEMENTS
MiFID II and MiFIR will ensure fairer, safer and more efficient markets and facilitate greater transparency for all participants. New reporting requirements and tests will increase the amount of information available, and reduce the use of dark pools and OTC trading. The rules governing high-frequency-trading will impose a strict set of organisational requirements on investment firms and trading venues, and the provisions regulating the non-discriminatory access to central counterparties (CCPs), trading venues and benchmarks are designed to increase competition. The protection of investors is strengthened through the introduction of new requirements on product governance and independent investment advice, the extension of existing rules to structured deposits, and the improvement of requirements in several areas, including on the responsibility of management bodies, inducements, information and reporting to clients, cross-selling, remuneration of staff, and best execution.