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MiFID regulations

Navigating the changing landscape of MiFID regulations 

What is mifid ii

Our take on MiFID II 

MiFID II went beyond the original MiFID directive with high level goals of increased transparency, a shift in trading towards more structured marketplaces, improved best execution, orderly trading behavior within markets and more explicit costs for both trading and investing.

Brexit

MiFID II and Brexit

Reference Data

In preparation for a "no-deal" Brexit scenario, Refinitiv has made contingency arrangements within our MiFID II reference data offering to ensure that you are prepared, and your reporting workflows are not adversely impacted.

21 new reference data fields, including FCA equivalents for Large In Scale (LIS) and Size Specific To the Instrument (SSTI) thresholds as well as liquidity flags, have been added and will be updated with FCA content when published by the regulator. The current expectation is that in the event of a “no-deal” Brexit, these values will follow the ESMA rules until May 2020.

See full details of the reference data fields that have been added to products

Real-Time Data

We support all the main APAs and MTFs setup as a result of MiFID II on our real-time network. In preparation for a ‘no-deal’ Brexit we have been applying the venue Brexit changes to the appropriate APAs, OTFs, and MTFs, including: setting up the EU versions of the Tradeweb, TRAX and Cboe NL APA; launching the new TP ICAP and Tradeweb MTFs and OTFs; and preparing for the launch of the Cboe DXE and Aquis EU equity venues.

In addition, we have been working to ensure Tradecho and Cboe EU APAs are available over our .xt Consolidated Trade Reporting RIC and onboarding the Cboe DXE Eu-based MTF to our pre-trade XBO consolidated Service.

You can track all the venue changes, and our XT/XBO Consolidated Service, being made as a result of Brexit via our Data Notification service on myRefinitiv. This includes Cboe DXE, Aquis, Turquoise, and Cboe EU APA.

MiFID II solutions & services

Our MiFID II offering

Reference data

Compliant reference data is the cornerstone of transaction reporting under MiFID II. Refinitiv has added more than 200 fields to support MiFID II compliance and continued to evolve our offering, including the addition of reference data fields in preparation for Brexit.

Pre- and post-trade transparency

Our real-time network supports numerous Trade Reporting APAs introduced in Europe as a result of MiFID II including APAs focused on non-equity, and exchange-based APAs. This includes both the post-trade as well as the pre-trade Systematic Internaliser (SI) quotes.

Investor protection

Financial institutions must act in the best interest of their clients and have an understanding of who is distributing the financial products they manufacture. We help you to ensure clear transparency as to how these products are made up, that they are appropriate, and whether investors could obtain better prices for individual products if sold separately.

SI determination

Our solution enables organisations to determine if they have breached MiFID II systematic internaliser (SI) thresholds. By leveraging aggregated data from Refinitiv’s data network, investment firms can determine whether they will exceed these thresholds and become an SI.

 

Trading Venues

Our real-time network launched MTFs and OTFs from Tradeweb, Bloomberg, TP ICAP and BGC Partners.  Venues also support instant time-stamping, the ESMA post-trade regulatory flags and the FIX MMT trade flag regimes as well as a flag to indicate Double Volume Cap restrictions.

Best execution

By bringing market and client data together, we can provide MiFID II compliant best execution monitoring and reporting. Additional reports, including RTS 27 and RTS 28, can also be provided through an on-premise or managed service.

Research, permissioning, and unbundling

MiFID II forced companies to separate transaction fees from research charges, making the value of research more prominent. Tools which Refinitiv offer, such as StarMine, allow you to to peer-rank the research you consume, ensuring the qualitative aspects of the MiFIR are catered for.

APA and publications services

The Tradeweb APA allows all asset classes to be published to support trade transparency rules under MiFID II. Both pre- and post-trade reporting requirements are supported.

Transaction reporting and record-keeping

Investment firms must report transactions in any MiFID II financial instruments to their local regulator or approved reporting mechanism (ARM) no later than the close of the following working day. We provide access to financial reference data and indicators to identify which instruments require MiFID II transaction reporting.