MiFID II and MiFIR: Stricter Rules for the EU Financial Markets

Busch, Danny

doi:10.2139/ssrn.3061732

Cited by 4 publications

(6 citation statements)

References 5 publications

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“…Equity instruments are shares, depositary receipts, ETFs, certificates and other similar financial instruments. Non-equity instruments are bonds, structured finance products, emission allowances and derivatives (Busch, 2017). MiFIR introduced wide-ranging pre-trade and post-trade transparency requirements to EU markets.…”

Section: Literature Review: Modeling Stock Returns Based On Economic Indicator's Surprisesmentioning

confidence: 99%

Modeling of EURO STOXX 50 index price returns based on industrial production surprises: basic and machine learning approach

Gasparėnienė¹,

Remeikienė²,

Sosidko³

et al. 2020

JESI

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There are a big number of researches which analyzing stock price returns. Some of them is based on fundamental analysis theory. Meanwhile other studies are based on efficient market hypotheses and financial behavior theories. However, there is not enough researches combining the characteristics of these theories into one. Such kind of researches in the scientific literature is usually referred to macroeconomic news, announcements, surprises, expectations studies. These studies examine not only the actual but also the predictive values of macroeconomic indicators announcements, normalizing them and thus creating absolutely a new surprise indicator. Purpose of this paper is modeling EURO STOXX 50 index price returns based on Industrial production surprise indicator. Empirical part shows that the best models for explaining EURO STOXX 50 index price returns was obtained at the 40 and 42 in different surprise indicator scenario. The coefficient of determination was obtained respectively 24.70% and 21,80%. Meanwhile applying machine learning method of artificial intelligence, a much more accurate models were obtained. The coefficient of determination respectively was 33,22% and 26,60%.

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Section: Literature Review: Modeling Stock Returns Based On Economic Indicator's Surprisesmentioning

confidence: 99%

Modeling of EURO STOXX 50 index price returns based on industrial production surprises: basic and machine learning approach

Gasparėnienė¹,

Remeikienė²,

Sosidko³

et al. 2020

JESI

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“…In brief, MiFID II introduced new concepts and provisions for the financial markets (Busch, 2017a). It introduced a new trading venue in the form of the OTF.…”

Section: Mifid II Scopementioning

confidence: 99%

“…Reporting obligations for transactions in financial instruments were considerably expanded with MiFID II's requirement to relate to OTC derivatives in MiFID II (Busch, 2017a). MiFID II further introduced a new kind of regulated entity, namely, the data reporting services provider.…”

Section: Mifid II Scopementioning

confidence: 99%

“…MiFID II's central idea would involve focusing on a degree of concentration of trading for shares admitted to trading on a regulated market or traded on a trading venue, including standardized OTC derivatives so as to boost liquidity and promote correct price formation (Busch, 2017a). It also contained detailed arrangements for position limits for commodity derivatives.…”

Section: Mifid II Scopementioning

confidence: 99%

“…This was in response to the G20 agreements for dealing with exceptional volatility of commodity derivatives. MiFID II in short introduced a substantial package of new rules that are envisaged to have a major impact on the financial markets and active market participants (Busch, 2017a).…”

Section: Mifid II Scopementioning

confidence: 99%

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MiFID II key concerns

Yeoh

2019

JFRC

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Purpose This paper aims to discuss key concerns surrounding the recent implementation of the Markets in Financial Instruments Directive (MIFID II). It focuses on the UK regime. The insights derived are envisaged to be helpful guides for participants and regulators in financial markets. Design/methodology/approach This paper used the legal-economics perspective. It relied on primary data from statutes and regulations and secondary data from the public domain to analyze the phenomenon. The analytical framework comprised the following sections: Introduction, MiFID I review, MiFID II scope, MiFID II key concerns and concluding remarks. Findings Only half of the EU Member States including the UK managed to transpose MiFID II within the 3rd January 2018 effective date. At this early stage of implementation, various teething problems were encountered. These pertained to costs and charges reporting, firm governance, product governance, transaction reporting, best execution and research. Owing to the sheer scale and complexity of MIFID II, most entities barely coped with their reporting obligations. Noting the situation, the Financial Conduct Authority assured firms taking all sufficient steps that they would be treated fairly. Research limitations/implications The paper was not sufficiently empirical. However, the study benefited reasonably from triangulation of data and perspectives to provide good insights on the implementation effects of the complex and voluminous EU rules for governing financial markets with global implications. Practical implications Investors could gain from the enhanced transparency and best execution rules. Investment banks could gain from the emerging resilient, integrated and efficient financial markets. Regulators with better access to more and higher quality reporting could intervene more effectively when required. Originality/value This paper assembled and critically analyzed currently available research insights in these areas so as to provide useful guidance to those needing to work and comply with MiFID II rules and academics teaching financial services law.

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