MiFIR
MiFIRAlso called markets in Financial Instruments Regulation, regulation (EU) No 600/2014
MiFIR, the Markets in Financial Instruments Regulation, is the EU regulation that sits alongside MiFID II. It applies directly in every member state and sets rules on transaction reporting, pre and post-trade transparency, trading obligations for shares and derivatives, and reference data. Investment firms and trading venues have applied it since 3 January 2018.
How it works
Under Article 26, investment firms report full details of each transaction to their national regulator no later than the close of the following working day. Reports cover the instrument, buyer, seller, decision maker and trader. Most firms send them through an approved reporting mechanism. Venues and systematic internalisers publish quotes and trade data under the transparency rules.
Regulators use MiFIR data to detect market abuse and monitor markets. Errors in reports draw fines and remediation orders, and firms must back-report corrections. The 2024 MiFIR review added an EU consolidated tape and changed transparency rules for bonds and derivatives. The UK onshored MiFIR in 2020 and now amends its version separately through FCA rules.
The rules
Sets transaction reporting, trade transparency, derivatives trading and reference data obligations across the EU.
EU investment firms, trading venues and systematic internalisersIntroduces consolidated tapes, revises transparency for bonds and derivatives and bans payment for order flow.
EU investment firms, trading venues and data providersKeeps MiFIR transaction reporting and transparency rules in UK law, now amended separately by HM Treasury and the FCA.
UK investment firms and trading venuesCommon questions
What is the difference between MiFID II and MiFIR?
MiFID II is a directive that member states transpose into national law. It covers authorisation, conduct and investor protection. MiFIR is a regulation that applies directly and covers transaction reporting, transparency and trading obligations. They took effect together on 3 January 2018.
What is MiFIR transaction reporting?
It is the duty under Article 26 for investment firms to report details of trades in in-scope instruments to their regulator by the end of the next working day. Regulators use the data to detect market abuse.
What is an approved reporting mechanism?
An approved reporting mechanism, or ARM, is an authorised service that submits transaction reports to regulators on behalf of investment firms. It validates reports and returns rejections so firms can correct them.
