The European Union (EU) has recently assumed a much stronger role in overseeing and controlling securities and derivative transactions to counter an unwanted growth in commodity speculation and “dark markets” in recent years. The EU’s goal is to establish a safer and more transparent financial system by enhancing regulatory requirements, market transparency and investor protection.
The Markets in Financial Instruments Regulation (MiFIR), issued by the EU Commission in 2011, requires financial institutions to migrate from current Markets in Financial Instruments Directive (MiFID) 1 reporting requirements to the stricter, more comprehensive MiFIR rules by end of year 2015.
MiFIR’s scope extends beyond the European securities markets and investment companies to commodity firms, data providers and third-party country firms. It also significantly expands both the range of required reporting and the type of data required, for example: