18.IV.1.3.2 Main changes from MiFID I to MiFID II

The MiFID II equity pre- and post-trade transparency regime applies to (1) shares and depositary receipts, ETFs, certificates, and other similar financial instruments that are (2) traded on an RM or MTF.1 The MiFID II equity pre- and post-trade transparency rules are maximum harmonised, meaning that Member States cannot impose stricter or more lenient rules.2MiFID II tightens several aspects of the MiFID I equity transparency regime. MiFID II has extended the scope in terms of financial instruments subject to the equity pre- and post-trade transparency regime (points 1-2 above). National discretion in terms of waivers has been limited through rule-based rules and an institutionalised waiver process within ESMA. MiFID II reduces the dark trading possibilities on RMs and MTFs by limiting the use of the reference price and one type of negotiated trade waiver through the double volume cap.3MiFID II has fine-tuned the SI-definition4 and also requires SIs to display more pre-trade transparency compared to MiFID I.5 Timing requirements for post-trade data publication have been clarified and the time limits have been reduced. Harmonised post-trade data formats are in place to facilitate data quality and to support consolidation.6 Furthermore, MiFID II introduces a share-trading obligation to ensure share trading takes place on transparent venues (RM, MTF, SI or equivalent third-country trading venue).7 Last, but not least, MiFID II covers a far more operational regime in terms of transparency calculations and databases compared to MiFID I.