What is MiFID?
On 3 January 2018 a material part of the German implementation act on the revised Directive on Markets in Financial Instruments II (MiFID II) and the accompanying regulations entered into force. Compared to MIFID I, the new directive MiFID II contains a large number of new rules on trading in financial instruments. This includes overarching issues relating to financial market infrastructure, for example the regulation of trading venues, as well as revised regulations for financial market participants regarding the distribution of financial instruments to investors.
MiFID II is complemented by the Markets in Financial Instruments Regulation (MiFIR) which is directly applicable and focuses on market transparency of transactions in financial instruments.
In Germany, MiFID II was transposed into national law by the Second Financial Markets Amendment Act (Zweites Finanzmarktnovellierungsgesetz – 2nd FiMaNoG). The 2nd FiMaNoG contains extensive amendments in particular to the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG), as well as to other regulatory frameworks, such as the German Stock Exchange Act (Börsengesetz – BörsG) and the German Banking Act (Kreditwesengesetz – KWG).
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