On January 14 2014, the European Parliament and European Council reached agreement in principle on the revised Markets in Financial Instrument Directive (Mifid II). The announcement signaled an important milestone in a long and difficult road to a major overhaul of a pillar of the EU financial regulatory framework.

Mifid II will mark a significant change in the mindset of EU regulatory authorities. Its scope will be expanded to cover a greater range of products and entities, there will be a much greater focus on investor protection, and a more intrusive and interventionist approach to regulation. There will also be significant changes affecting organised trading of financial instruments, pre- and post-trade transparency (among other aspects of market infrastructure), and a greater focus on enforcement and supervision by national regulators.

Originally published in International Financial Law Review on February 24, 2014.