ESMA Report Clarifies MiFID II/MiFIR Technical Standards
- With the consultation process complete, the final report provides updates on the draft regulatory and implementing technical standards.

The European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) has published its Final Report covering the draft Technical Standards on authorisation, passporting, registration of third country firms and cooperation between competent authorities.
The report stems from extensive public consultation regarding the EU’s financial legislation, Markets in Financial Instruments Directive II (MiFID II MiFID II MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina Read this Term/MiFIR), which provides a Directive and Regulatory statement. It is aimed at ensuring a high degree of consumer protection across a harmonised European financial market.
In terms of ESMA’s role, the EU financial regulator has been tasked with proposing regulatory technical standards (RTS) and implementing technical standards (ITS). While the draft RTS and ITS have been submitted to the European Commission, ESMA has been undertaking an extensive public consultation process, which closed in March.
The report therefore elaborates and provides analysis on the feedback from the consultation paper, describes material changes to the technical standards and explains the rationale for any such amendments.
It contains the majority of the draft RTS and ITS on investor protection topics which ESMA is expected to develop, as well as a cost-benefit analysis.
Broadly, the legislation builds on its predecessor, MiFID, which sought greater investor protection, introduced competition to the EU trading landscape and provided a ‘passport’ for trading venues and investment firms to operate throughout Europe on the basis of authorisation in their home Member State.
The technical standards seek to tighten up and harmonise standards and requirements for authorisation, registration and reporting from firms and cooperation between supervisory authorities.
The remaining draft technical standards ESMA is mandated to develop under MiFID II and MiFIR will be published by the end of 2015.
The European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) has published its Final Report covering the draft Technical Standards on authorisation, passporting, registration of third country firms and cooperation between competent authorities.
The report stems from extensive public consultation regarding the EU’s financial legislation, Markets in Financial Instruments Directive II (MiFID II MiFID II MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina Read this Term/MiFIR), which provides a Directive and Regulatory statement. It is aimed at ensuring a high degree of consumer protection across a harmonised European financial market.
In terms of ESMA’s role, the EU financial regulator has been tasked with proposing regulatory technical standards (RTS) and implementing technical standards (ITS). While the draft RTS and ITS have been submitted to the European Commission, ESMA has been undertaking an extensive public consultation process, which closed in March.
The report therefore elaborates and provides analysis on the feedback from the consultation paper, describes material changes to the technical standards and explains the rationale for any such amendments.
It contains the majority of the draft RTS and ITS on investor protection topics which ESMA is expected to develop, as well as a cost-benefit analysis.
Broadly, the legislation builds on its predecessor, MiFID, which sought greater investor protection, introduced competition to the EU trading landscape and provided a ‘passport’ for trading venues and investment firms to operate throughout Europe on the basis of authorisation in their home Member State.
The technical standards seek to tighten up and harmonise standards and requirements for authorisation, registration and reporting from firms and cooperation between supervisory authorities.
The remaining draft technical standards ESMA is mandated to develop under MiFID II and MiFIR will be published by the end of 2015.