The Council of the European Union has recently adopted a series of amendments to the Markets in Financial Instruments Regulation (MiFIR) and Directive (MiFID II). These revisions aim to significantly enhance market data transparency within the EU, ultimately benefiting investors and fostering a more competitive capital market landscape. A cornerstone of this reform package is the introduction of EU-wide consolidated tapes. These centralized data feeds will aggregate market data from various trading platforms, offering investors a comprehensive and readily accessible source of real-time information. This consolidated view of financial instruments traded across the EU empowers both professional and retail investors to make informed investment decisions.

Furthermore, the new regulations address the practice of ‘payment for order flow’. This practice, where brokers receive financial incentives for directing client orders to specific platforms, has raised concerns about potential conflicts of interest. The amendments introduce a general ban on PFOF, promoting a fairer and more transparent trading environment. However, member states with existing PFOF practices may be granted temporary exemptions until June 2026, with the requirement to phase out such arrangements within their jurisdictions. The revised framework also encompasses new regulations for commodity derivatives, aiming to strengthen oversight and transparency within this specific market segment.

The full press release is available here.