One Year Anniversary for MiFID II — Its Implications
The Markets in Financial Instruments Directive (MiFID II) was introduced on the 3rd of January 2018, following a year-long delay due to concerns raised by ESMA.
On its first anniversary, we go back in time to examine the real scope for introducing the original MiFID legislation, the reasons that led to MiFID II and the intentions for introducing new legislation under MiFID II.
In November 2007, the European Parliament introduced MiFID intending to create a benchmark to ensure consistency in investor protection across the European Union member states. However, since then a number of things made it quickly obvious that an upgraded directive would be needed. Things such as the global financial crisis of 2008, the changes in technology, the constant innovation in financial instruments and the increase of automated trading, revealed that much more was needed to achieve investor protection.
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