The MiFID market infrastructure


Not so long ago, in a galaxy not that far away…

…traders mainly had two ways to deal securities and derivatives: either they chose regulated markets run by national exchanges if they favoured transparency and liquidity, or bilateral –OTC- trading if their preference goes to discretion and tailor-made products. But during the last 10 years, this traditional frontier was blurred by the introduction of new places to trade.

Following the 2007-2009 financial crisis, G20 countries agreed to gradually implement regulations to steer trading away from less-regulated bilateral and OTC, towards public exchanges, electronic platforms and central counterparties. The goal was to reduce systemic risk and improve market transparency. Since then, several pieces of regulation were implemented in Europe: EMIR compels investment firms to trade derivatives on a trading platform when liquidity is sufficient, CRD IV requires additional capital for uncleared transactions, while MiFID I and II introduced new market infrastructures, and trading obligations. In the rest of this article, we focus on the changes brought in Europe by the two iterations of MiFID.


  • The MiFID market infrastructure

    • Not so long ago, in a galaxy not that far away…

    • MiFID I: “A New hope"

    • Dark Liquidity: The Empire Strikes Back

    • MiFID II: The return of the Jedi

    • Where will the dark pool trading go? Will MiFID II manage to?

The author


Thomas Dufresne hold a Master's Degree in Engineering - Computer Science (Ecole des Mines de Nantes, France) and worked for 5 years Paris in life insurance and asset management. Thomas moved to Brussels in 2008 and joined ING, where he worked for 8 years in risk management and financial markets before joining Initio in 2017.

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