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MiFID v EMIR: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "{{a|regulation|}}The two major pieces of regulation covering the European investment banking and trading worlds are MiFID — the Markets in Financial Instruments Directive and EMIR — the European Market Infrastructure Regulation. As a super high level, what is the difference between MiFID and EMIR? {| class="wikitable" |+ Comparison between EMIR and MiFID {{aligntop}} ! Aspect !! EMIR !! MiFID {{aligntop}} | '''Regulation Type''' || Regulation (im...") |
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{{a|regulation|}}The two major pieces of regulation covering the European investment banking and trading worlds are MiFID — the [[MiFID|Markets in Financial Instruments Directive]] and [[EMIR]] — the [[European Market Infrastructure Regulation]]. | {{a|regulation|}}The two major pieces of regulation covering the European investment banking and trading worlds are MiFID — the [[MiFID|Markets in Financial Instruments Directive]] and [[EMIR]] — the [[European Market Infrastructure Regulation]]. | ||
It is easy to get them confused, as they somehow impact on a lot of the same material: securities, transactions, swaps, stuff like that. The best way of thinking about them is that MiFID is regulates financial services, and the people who offer them to the public, to make sure they are behaving themselves and not taking advantage of the poor misguided souls who buy and sell financial services and products, while EMIR is designed to regulate and protect the financial system itself and therefore is focussed on setting standards and ensuring safety rails are in place to avoid the concentration of market risk in the system. | |||
MiFID came into force in 2007, and was conceived and enacted well before the [[global financial crisis]], as part of the EU’s general development and harmonisation of its internal market. EMIR was a direct response to the financial crisis. | |||
So, at a super high level, what is the difference between MiFID and EMIR? | |||
{| class="wikitable" | {| class="wikitable" | ||