MiFID II
MiFID II is the European directive that regulates markets in financial instruments and protects investors.
What is it? - Dummies
MiFID II is the rulebook for financial markets in Europe. If financial instruments (shares, bonds, derivatives) were a playing field, MiFID II would be the set of rules saying who can play, how players are signed, and how spectators are protected. It sets out how banks and platforms must behave when they sell you investment products.
What is it? - PRO
MiFID II (Directive 2014/65/EU, Markets in Financial Instruments Directive II) regulates the provision of investment services and activities, trading venues and investor protection in the EU. Annex I, Section C contains the list of financial instruments.
It is the anchor rule for tokenisation: when a token represents a financial instrument (for example, a digitalised share or bond), it falls under MiFID II and securities markets law, and therefore outside the scope of MiCA.
Key points
- A directive that must be transposed into the national law of each Member State.
- Defines the list of financial instruments (Annex I, Section C).
- Reference rule for security tokens.
- Complemented by MiFIR (Regulation (EU) 600/2014).
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