MiFID II, which is a package of measures consisting of a revised Directive (the Markets in Financial Instruments Directive), a new regulation (the Markets in Financial Instruments Regulation) and subsidiary implementing legislation, will come into force in the UK and throughout the EU on 3 January 2018. This represents a far reaching overhaul of EU legislation and regulation governing firms who provide services to clients linked to financial instruments and the venues on which those instruments are traded.

Changes to market structure and transparency under MiFID II are expected to have fundamental impacts on the way markets for financial instruments operate. Though less fundamental, MiFID II’s reforms of conduct of business requirements upon financial services firms operating in the EU are also driving some firms to reassess and amend their business models. The impact is not just upon firms based in the EU but also on cross border groups and cross border trading and services. Some key conflict of laws issues and cross border impacts, such as differences between the way asset managers in the US pay for research compared with MiFID II requirements, are still being worked out