MiFID II

Destination MiFID II

 
Days
 
Hours
 
Minutes
 
Seconds
until MiFID II enters into force

MiFID II, the revised Markets in Financial Instruments Directive scheduled for 3 January 2018, presents both challenges and opportunities to all financial market participants. As a leading European operator of financial markets and a provider of trading technologies, Euronext has established a MiFID II programme to ensure our compliance with regulatory requirements and assist customers through the delivery of services in a number of initiatives.

MiFID II builds on MiFID I, aiming to improve the functioning of financial markets by

  • Increasing transparency by extending pre- and post-trade transparency and reporting requirements (APA and ARM) from shares to all asset classes (cash, commodities and derivatives)
  • Ensuring that the trading of shares and eligible derivatives is conducted on MiFID venues
  • Promoting orderly markets by extending the scope of MiFID I to include algorithmic and high frequency trading (HFT)
  • Improving the oversight and transparency of commodity markets by introducing position limits and reporting service
  • Updating rules on market microstructures, in particular those linked to HFT
  • Encouraging competition in trading and clearing across financial markets
  • Providing pre-trade risk controls, such as Kill Switch, Order Size limits and others.

This webpage provides an overview of the new services and products developed by Euronext based on the opportunities presented by MiFID II and on client feedback. The webpage will be updated regularly.

 
Market Structure
and Transparency

MiFID II gives rise to a number of macro themes that will impose significant changes on overall market structure and transparency. This section outlines the key themes and presents Euronext’s position and developments with respect to these themes. Euronext will update this section as necessary.

Trade publication and reporting mechanisms (APA/ARM)
Market data disaggregation and fees
Best execution
Commodities and Position Reporting
Market making
Pre- and post-trade transparency
   Equities
   Non-equities
 
  

 
Third country
access

MiFID II will allow third country firms to provide investment services and perform investment activities (wholesale business activities) if the third country’s legal and supervisory arrangements are considered equivalent to the EU framework. This section outlines the key requirements and Euronext’s position.

Third country access 

 
Micro-Structure

MiFID II imposes a number of micro structural requirements on trading venues that will also impact participants. This section outlines the key requirements and presents Euronext’s position and developments with respect to these requirements. Euronext will update this section as necessary.

Legal entity identifier (LEI)
ISIN code
Clock synchronisation
Kill Switch
Direct Electronic Access (DEA)
Order to Trade Ratio
Tick Sizes
New order fields
Algo declaration and flagging
Conformance and algo testing 

 
Timeline

MiFID II is set to come into effect on 3 January 2018. This section outlines Euronext’s key implementation milestones with regard to MiFID II.

Timeline 

MiFID II Resources
11 aug 2017 MiFID II: Transaction reporting for non-MiFID Euronext members
25 jul 2017 MIFID II for Euronext Derivatives Markets: V-EUA Upgrade and Conformance Test Details
19 jul 2017 Optiq Phase 2 - Release of Technical Specifications for Optiq TCS Order Entry - SBE Interface
10 jul 2017 MiFID II: opening of test platform and release of specifications for short and long code management
05 jul 2017 Optiq and Mifid II - Important programme updates
30 jun 2017 Updates on reporting obligations and on Euronext’s APA/ARM services
30 jun 2017 MIFID II - Release of updated technical specifications for order entry
12 jun 2017 Draft Rulebook and Trading Manual available
07 jun 2017 Euronext Market Making Adjustments for MiFID II
28 apr 2017 OPTIQ Market Data Gateway (MDG): Production environment now available for connectivity testing
25 apr 2017 Planned Launch of Euronext Block
13 apr 2017 Optiq market data gateway (MDG) physical EUA environment update and MIFID II derivatives test availability
10 apr 2017 Market abuse regulation / MIFIR: migration of trading codes to ISIN codes for existing derivatives contracts
04 apr 2017 Euronext’s APA/ARM Services: New opening Date on the External User Acceptance Platform
20 mar 2017 Market abuse regulation / MIFIR: migration of trading codes to ISIN codes for existing derivatives contracts
17 mar 2017 MiFID II: Release of Technical documentation for Cash and Derivatives markets
27 feb 2017 Euronext’s APA/ARM services: EUA date confirmed and specifications now available
04 jan 2017 Adjustments to Liquidity Provider Performance Related Trading Fees and MiFID II Compliance for Existing LP Programmes
22 dec 2016 Market abuse regulation / MIFIR 2: Migration of trading codes to ISIN codes for existing derivatives contracts
14 dec 2016 Euronext preparations for MiFID II