Capital Markets Union Impacts on the MIFID2/MIFIR package


On 25 November 2021, the European Commission (EC) published a set of measures on the implementation of the Capital Markets Union (CMU) in the form of proposals for amendments to existing texts.

 These modifications cover in particular the MIFIR Regulation (600/2014) and MIFID2 (2014/65/EU).

The main changes are aimed at improving liquidity, transparency, market financing and also helping investors (especially small investors) in their investment decisions. If the published texts contain different proposals (revision of certain waivers, of the trading obligation concerning shares or derivatives, etc.), the flagship measure concerns the implementation of European CTPs (Consolidated Tape Provider) accessible to all investors. Information should be available “as close to real time as possible”.

The concept of CTP was present in the 2014 texts but it did not achieve the intended objectives. In its 2021 proposal, the EC goes one step further by introducing single European CTPs for each asset class. It creates the concepts of market data contributors, regulatory data, defines the list of core market data, introduces the obligation for trading venues and systematic internalisers to feed the CTP, etc.

ESMA will be responsible for the selection process for CTPs (the authorization would be for 5 years), which will have to meet organizational requirements and reporting obligations on their site.

The draft texts published by the EC will now be discussed at Parliament and Council level.

EC Q&A on CMU: