MiFID – Markets in Financial Instruments Directive

The European Parliament and Council adopted the Directive 2004/39/EC, dated 21 April 2004, on Markets in Financial Instruments (MiFID), which came into effect on 01/11/2007 aiming to regulate the markets of financial instruments for provision of investment services and activities within the European Economic Area (EEA). The Directive has also been adopted in Cyprus through the Cyprus Investment Services and Activities and Regulated Markets Law of 2007 (Law 144(I)/2007).

The European Union’s Markets in Financial Instruments Directive (MiFID) provides a harmonized regulatory regime for investment services within the European Economic Area. The main objectives of the Directive are to increase efficiency, enhance financial transparency, increase competition, and offer greater consumer protection in investment services. One of the unique principles of MiFID is that an investment firm may freely provide its investment and ancillary services within the territory of another member state and/or a third country, provided that such services are covered by the investment firm’s authorization.

On 20 October 2011, building on the rules already in place, the European Parliament and the Council, adopted a legislative proposal for the revision of MiFID which later took the form of a revised Directive 2014/65/EU, repealing MiFID, Markets in Financial Instruments Directive (MiFID II) and a new regulation, Markets in Financial Instruments Regulation (MiFIR), in order to take into account development in the trading environment, since the implementation of MiFID in 2007 and to improve the functioning of financial markets making them more efficient, resilient and transparent, in light of the financial crises.

MiFID II and MiFIR – Markets in Financial Instruments Directive

Following the MiFID, a new legislation being known as MiFID II, which is a revised MiFID and a new Markets in Financial Instruments Regulation (MiFIR) has been taken effect.

The new set of legislation aims to a greater protection for investors and foresees for more transparency into all asset classes such as equities to fixed income, exchange traded funds and foreign exchange.

MiFID II and MiFIR empowered European Securities and Markets Authority (ESMA) to develop several Regulatory Technical Standards (‘RTS’). These RTS provide the standards for transparency, organisational requirements for trading venues, data publication and access, transaction reporting, post-trading, commodity derivatives and best execution.

European Securities and Markets Authority (ESMA) developed numerous draft regulatory technical standards (RTS).

Information on RTS, please click here to access the relevant applicable RTS.

MiFID II and MiFIR came into effect on all EU Member States national law as of 03/01/2018.

CySec – Cyprus Securities and Exchange Commission

Leverate Financial Services Ltd is regulated by the Cyprus Securities and Exchange Commission (License No. 160/11), authorizing the company to provide Prime Brokerage Services and Straight-Through Processing to all European Union member states and other third countries.

The Cyprus Securities and Exchange Commission (CySEC) is the supervisory and regulatory authority for Investment Services firms in Cyprus and is a member of the Committee of the European Securities Regulators (CESR).

Leverate Financial Services Ltd complies with all applicable EU and local regulations including the European Markets in Financial Instruments Directive II (MiFID II) and the Cyprus Investment Services and Activities and Regulated Markets Law of 2017 (Law 87(I)/2017).

For more information, please contact us.

View our license.

Leverate Financial Services is a Cypriot Investment Firm regulated by the Cyprus Securities and Exchange Commission (CySEC) (License No.160/11), authorizing the company to provide, Prime Brokerage Services and Straight-Through Processing to all European Union member states and other third countries.
Risk Warning: Trading Foreign Exchange (Forex) and Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. FX and CFDs carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all of your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Seek independent advice, if necessary. Please read Leverate’S Risk Disclosure Statement.