Trading

How Brexit could trigger the arrival of Mifid III

The advent of Brexit fundamentally challenges the transparency objectives in Mifid II, which in turn may necessitate a speedy rewrite of the rules

Tearing up the rule book: the advent of Brexit threatens this core objective of Mifid II
Tearing up the rule book: the advent of Brexit threatens this core objective of Mifid II Photo: Reg Speller / Hulton Archive / Getty Images

The financial crisis exposed weaknesses in the functioning and transparency of the financial markets.

As a result, the European Union updated the 2004 Markets in Financial Instruments Directive to create Mifid II — due to be implemented on January 3, 2018 — with the central aims of improving transparency in financial markets, mitigating systemic risk and protecting against market abuse. 

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