MiFIR/MiFID II
From zero to MiFIR/MiFID II compliance in a click, with Control Now
What are MiFIR and MiFID II?
MiFIR (Markets in Financial Instruments Regulation) is a European regulation that works alongside MiFID II (Markets in Financial Instruments Directive II) to increase transparency and oversight in financial markets. It came into effect on 3rd January, 2018 and applies to investment firms, trading venues and market participants within the EU.
MiFID II and MiFIR create a comprehensive transaction reporting framework that enhances market surveillance and investor protection. Firms must ensure accurate, timely, and complete transaction reporting or face significant penalties.
Did you know, with MiFIR/MiFID II you can report directly?
Through MiFIR/MiFID II, organisations are able to send their transaction reports directly to the regulatory endpoint. This removes the need for a an ARM (Approved Reporting Mechanism), making the entire reporting journey quicker, simpler and more cost effective.
Benefits of MiFIR/MiFID II direct reporting with Control Now
Simplified and seamless reporting
No need for an ARM or data middleman. Report directly to the regulatory endpoint such as the FCA or ESMA and save time, money and resources.
Cutting-edge software
Automate processes, reduce errors and improve consistency with TR Connect and TR Accuracy, our solutions that have been built from the ground up to ensure MiFIR/MiFIDII direct reporting is a breeze.
Take control now
Through MiFIR direct reporting, you're in control. Send the right data to the regulatory endpoint of your choice, when you need to. Get MiFIR reporting done right, fast - if you need a little help, we're here to support.
MiFIR
MiFIR is a regulation, meaning it has direct effect in all EU member states without needing local implementation. It focuses on:
Pre- and post-trade transparency (reporting requirements for trading activity).
Data reporting (real-time publication of trade data).
Systematic Internalisers (SIs) (rules for firms executing client orders off-exchange).
Transaction reporting (ensuring regulators have full visibility of trading activity).
Who does it apply to?
Trading venues, financial firms and investment banks involved in securities trading.
MiFID II
MiFID II is a directive, meaning that EU member states must transpose it into national law. It sets broad rules for financial markets, focusing on:
Investor protection (e.g., stricter rules for financial advice).
Best execution (firms must ensure clients get the best trade conditions).
Product governance (ensuring financial products are suitable for investors).
Transparency and trading rules (regulating trading venues and brokers).
Who does it apply to?
Investment firms, brokers, banks, asset managers, trading platforms and financial advisors.
What are the main aspects of MiFIR and MiFID II for transaction reporting?
Scope & Applicability
MiFIR (Regulation) establishes the core transaction reporting framework.
MiFID II (Directive) provides additional guidance on how firms should comply.
Applies to investment firms, trading venues, and approved reporting mechanisms (ARMs).
Who must report?
Investment firms executing trades.
Systematic Internalisers (SIs).
Trading venues (regulated markets, MTFs, OTFs).
Central counterparties (CCPs).
Who receives the reports?
National Competent Authorities (NCAs) (e.g., the UK’s FCA, Germany’s BaFin).
Reports are then shared with ESMA (European Securities and Markets Authority).
Key Reporting Obligations
a) Transaction Reporting (Article 26 of MiFIR)
Every trade in financial instruments must be reported by the end of the next working day (T+1).
Reports must include detailed information about the trade, including:
Buyer & seller identification (LEI, national ID).
Instrument details (ISIN, type of security).
Trade price, quantity, and venue.
Execution timestamps (down to the millisecond).
Algorithmic trading identifiers (if applicable).
Short sale indicators (if a position is being shorted).
Why? To allow regulators to detect market abuse and ensure fair trading.
b) Pre-Trade & Post-Trade Transparency
Pre-trade: Trading venues must publish bid/offer quotes before execution.
Post-trade: Trade details (price, volume, execution time) must be published immediately after execution.
Why? To improve price discovery and market transparency.
c) Reporting via ARMs (Approved Reporting Mechanisms)
Investment firms can outsource transaction reporting to an ARM (a registered entity that submits reports on their behalf).
ARMs ensure accurate formatting and compliance with ESMA rules.
Why? To reduce reporting burden on firms and ensure consistency.
Consequences of Non-Compliance
Fines from regulators (e.g., ESMA, FCA, BaFin).
Increased regulatory scrutiny, audits, and possible trading bans.
Loss of reputation and potential legal action.
Resources and useful links
To help organisations and individuals better understand reporting under MiFIR and MiFID II, we've produced the below resources.
Webinars - Watch or revisit our collection of webinars on MiFIR and MiFID II
Useful links
MiFID Legislative Text - https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32004L0039&from=EN
MiFID II Legislative Text - https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014L0065-20230323
MiFIR Legislative Text - https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014R0600-20220101
MiFIR Reporting ESMA - https://www.esma.europa.eu/data-reporting/mifir-reporting
UK MiFIR Reporting FCA - https://www.fca.org.uk/markets/transaction-reporting
That's why Control Now is here!
Over the years, we've helped a huge number of diverse organisations sort their reporting.
Expert guidance
If you're struggling with the requirements of MiFIR/MiFID II, we can help guide and advise on how to become compliant.
Comprehensive, end-to-end reporting solutions
Our Control Box product suite helps streamline every stage of the transaction reporting process, using our four stage process: transform, submit, check, maintain.
Outcome focussed
We have a significant history of improving our clients' reporting processes when adapting to complex regulatory change
Is your reporting fit for MiFIR/MiFID II?
If you've got any doubts or questions about being MiFIR/MiFID II compliant, we can help. Our deep knowledge of all things regulatory and our market-leading tool, Control Box, mean no matter what challenges you might be facing, we can help.