September 23, 2020

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September 23, 2020

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European Commission Adopts MiFIR Delegated Act

On May 18, the European Commission (EC) adopted a delegated act to supplement the Markets in Financial Instruments Regulation (MiFIR). The delegated act is in the form of a regulation (Delegated Regulation) and covers definitions, transparency, portfolio compression and supervisory requirements on product intervention and position management under MiFIR.

Chapter I of the Delegated Regulation details specifications to determine a liquid market for equity instruments (including shares, depositary receipts, exchange traded funds and certificates), which impacts pre- and post-trade transparency obligations under MiFIR. Chapter II relates to the requirements for trading venues and systematic internalizers to provide market data on a reasonable commercial basis, and Chapter III defines the scope of obligations on systematic internalizers with regards to making quotes public, order execution and transparency. Chapter IV sets out details in relation to derivatives and portfolio compression, and Chapter V contains the criteria that the European Securities and Markets Authority, the European Banking Authority and national competent authorities of EU Member States must take into account when looking to exercise product intervention and position management powers under MiFIR.

As mentioned in previous updates, the European Council and European Parliament will consider the Delegated Regulation, and once formally approved, the Delegated Regulation will go into effect 20 days following its publication in the Official Journal of the European Union.

A copy of the Delegated Regulation (and accompanying Annex) is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume VI, Number 142


About this Author

Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

+44 0 20 7776 7629
Carolyn H. Jackson, International Attorney, Katten Muchin law firm

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws and regulations. 

+44 0 20 7776 7625