MIFID II is a legislation that is instituted by the European Union to regulate financial markets and protect investors. The law is made to impose standards in practice in the EU. A revised version of the original MIFID version in 2008 was ratified in January 2018.
MIFID II imposes reporting requirements and tests to increase transparency within companies and refrain them from using dark pools and over-the-counter trading. The regulations also target high-frequency trading. Algorithms used for automated trading have to be tested and registered.
Business-related messages are included in MIFID requirements for companies. This is to ensure that every business transaction is safely kept, and in case something wrong happens, you can use these messages as evidence under the law. Archiving messages and recording phone calls are required in MIFID II.
Because of the coronavirus epidemic, people have been banned from going to their workplace to lower the transmission rate. In this way, the infection would not spread. There are no jobs today, but there is an option for workers that do their tasks at home, online.
More and more people have been working from their homes using their laptops. Because of this situation, all meetings, transactions, and deals happen virtually. This means that the MIFID II legislation has been more useful than ever. Because of the current situation and world events, there have been updates on the bill.
If you wish to know the updates regarding MIFID II, here is an infographic from TeleMessage that sets a precise detail on what’s new with the legislation.
