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The challenges and implications of the Markets in Financial Instruments Directive (MiFID) and of its revision (MiFID II, MiFIR) on the efficiency of financial markets

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Financial Regulation in the EU

Abstract

This chapter will focus on the investigation of challenges underlined by the Markets in Financial Instruments Directive (MiFID) in view of the financial market efficiency. This chapter provides a reporting and an assessment of implications of this directive on the financial market efficiency through the selection of major academic work achieved on this subject. Its revision through MiFID II and MiFIR will also be taken into account given that it constitutes a key directive and a key regulation for the future organization and functioning of European financial markets. In conclusion, the remaining challenges towards the original objectives of MiFID will be underlined to determine what remains to be achieved to benefit from more integrated and efficient European financial markets in order to reduce the cost of capital, to generate growth and to reinforce the international competitiveness of the European Union without neglecting the rights and duties of its citizens and investors.

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Notes

  1. 1.

    The strategy 2020 is available at the following URL: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:EN:PDF.

  2. 2.

    The directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU is available at: http://eur-lex.europa.eu.

  3. 3.

    The regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 is available at: http://eur-lex.europa.eu.

  4. 4.

    For a review of the European challenges post-1992, see Jacquemin, Wright and Silberston (1994)

  5. 5.

    See the following regulation COM(2010)301 Final. For further details see: http://ec.europa.eu.

  6. 6.

    See the following regulation COM (2009) 563 Final. For further details see: http://ec.europa.eu.

  7. 7.

    See the following regulation COM (2010) 484. For further details see: http://ec.europa.eu.

  8. 8.

    See the following regulation COM (2011) 656. For further details see: http://ec.europa.eu.

  9. 9.

    See the following regulation COM (2011) 656 Final. For further details see: http://ec.europa.eu.

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Author information

Authors and Affiliations

  1. Sorbonne Management School (PRISM and Labex RéFi), University Paris I Panthéon – Sorbonne, Rue de la Sorbonne, 17, 75 231 Cedex 05, Paris, France

    Roland Gillet & Stéphanie Ligot

  2. Labex RéFi, University Paris I Panthéon – Sorbonne, Rue de la Sorbonne, 17, 75 231 Cedex 05, Paris, France

    Hassan Omidi Firouzi

Authors
  1. Roland Gillet
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  2. Stéphanie Ligot
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  3. Hassan Omidi Firouzi
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Corresponding author

Correspondence to Roland Gillet .

Editor information

Editors and Affiliations

  1. Labex RéFi and Centre d’Economie de la Sorbonne, Paris, France

    Raphaël Douady

  2. Université Paris 1 Panthéon-Sorbonne, Paris, France

    Clément Goulet

  3. Labex RéFi and Centre d’Economie de la Sorbonne, Paris, France

    Pierre-Charles Pradier

Appendix

Appendix

Fig. 8.5
figure 5

Securities Exchange Statistics: Value of executed trades in millions of Euros (Source: ECB - June 2015)

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Fig. 8.6
figure 6

Central Counterparty Clearing: Number of participants (Source: ECB - 2015)

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Fig. 8.7
figure 7

Central Counterparty Clearing: Number of cash (outright) securities transactions in thousands (Source: ECB - 2015)

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Fig. 8.8
figure 8

Central Securities Depositories: Number of transactions in thousands (Source: ECB - 2015)

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Fig. 8.9
figure 9

Central Counterpart Clearing: Value of cash (outright) securities transactions in billions of Euros (Source: ECB - 2015)

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Fig. 8.10
figure 10

Central Securities Depositories: Participation (End of period) (Source: ECB - 2015)

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Table 8.2 Global regulatory changes
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Table 8.3 Broad overview of the key changes set out in MiFID II/MiFIR (Source: Linklaters – Factsheet 03 July 2014)
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Gillet, R., Ligot, S., Firouzi, H.O. (2017). The challenges and implications of the Markets in Financial Instruments Directive (MiFID) and of its revision (MiFID II, MiFIR) on the efficiency of financial markets. In: Douady, R., Goulet, C., Pradier, PC. (eds) Financial Regulation in the EU. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-44287-7_8

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  • DOI: https://doi.org/10.1007/978-3-319-44287-7_8

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