This document provides an overview of the new MiFID II operational framework. It includes chapters on market structure, transparency requirements, position limits, organizational requirements, conduct of business rules, and the reporting framework. Key points covered include the types of firms subject to MiFID II, trading venues such as MTFs and OTFs, pre and post-trade transparency requirements, position limits for commodity derivatives, and new organizational and conduct standards for investment firms.

1. UNPRI MIFID II
Training Manual
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TABLE OF CONTENTS
TABLE OF CONTENTS .........................................................................................................................1
LIST OF TABLES ...................................................................................................................................9
LIST OF FIGURES ...............................................................................................................................12
CHAPTER 1: AN INTRODUCTION TO THE NEW MIFID II OPERATIONAL FRAMEWORK ..........13
1 CHAPTER 1 ABBREVIATIONS.................................................................................................13
2 MiFID..........................................................................................................................................15
3 ALIGNING EU REGULATION AND THE MiFID II LEVEL PLAYING FIELD.............................16
3.1 MiFID II Objectives............................................................................................................16
3.2 MiFID III?...........................................................................................................................17
3.3 About MiFID II ...................................................................................................................18
3.4 MiFID II Areas ...................................................................................................................19
3.5 MiFID II Highlights.............................................................................................................19
3.6 Regulatory Reporting Requirement...................................................................................20
4 MiFID II FIRMS...........................................................................................................................21
5 MiFID II EXEMPT FIRMS...........................................................................................................22
5.1 Ancillary Activity Criteria....................................................................................................24
6 MiFID II OPTIONAL EXEMPT FIRMS .......................................................................................25
6.1 MiFID II Investment Services and Activities......................................................................26
6.2 MiFID II Ancillary Services ................................................................................................27
6.3 MiFID II Financial Instruments ..........................................................................................27
6.4 MiFID II Data Reporting Services......................................................................................29
CHAPTER 2: MARKET STRUCTURE, TRADE AND TRANSACTION REPORTING........................30
7 ABBREVIATIONS ......................................................................................................................30
8 TRADING PROCESS AND FINALISATION OF TRANSACTIONS REQUIREMENTS ............31
9 MULTILATERAL TRADING FACILITY (MTF) ...........................................................................32
9.1 MTF Prohibition.................................................................................................................33
9.2 MPT Definition...................................................................................................................33
9.3 ESMA Registered MTFs ...................................................................................................33
10 ORGANISED TRADING FACILITY (OTF)............................................................................38
10.1 NCA Obligations and Powers............................................................................................40
11 SYSTEMIC INTERNALISER (SI)..........................................................................................40
11.1 ESMA Registered SIs .......................................................................................................40
12 SME MARKETS ....................................................................................................................41
12.1 Policy and Objective..........................................................................................................41
12.2 Impact of SME Classification on AIM................................................................................42
12.3 SME Growth Market..........................................................................................................42
13 BEST-EXECUTION AND EXECUTION ONLY REPORTING ..............................................43
13.1 Best Possible Result for Client..........................................................................................43
13.2 Best Execution Criteria......................................................................................................44

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13.3 Execution Only Reporting .................................................................................................45
14 OVERVIEW OF DATA REPORTING SERVICES PROVIDERS ..........................................45
15 DATA REPORTING SERVICES PROVIDER.......................................................................46
16 Management Body Obligations.............................................................................................46
17 APPROVED PUBLICATION ARRANGEMENT (APA) .........................................................47
17.1 MiFIR Article 20.................................................................................................................47
17.2 MiFIR Article 21.................................................................................................................47
17.3 APA Obligations ................................................................................................................47
17.3.1 APA ESMA Technical Standards..............................................................................48
17.3.2 APA Equity Transparency Publication ......................................................................48
17.3.3 APA Non-Equity Transparency Publication ..............................................................48
18 APPROVED REPORTING MECHANISM (ARM) .................................................................48
18.1.1 ARM MIFID II Obligations .........................................................................................49
18.1.2 ARM RTS Obligations ...............................................................................................49
19 CONSOLIDATED TAPE PROVIDER (CTP).........................................................................49
19.1 CTP Obligations ................................................................................................................50
19.1.1 CTP Equity Transparency Publication ......................................................................52
19.1.2 CTP Non-Equity Transparency Publication ..............................................................52
20 MACHINE READABILITY .....................................................................................................52
20.1 Machine Readable Way....................................................................................................52
21 FLAGS...................................................................................................................................53
CHAPTER 3: TRANSPARENCY, POSITION LIMITS AND POSITION REPORTING.......................59
22 ABBREVIATIONS .................................................................................................................59
23 TRANSPARENCY.................................................................................................................60
23.1 The New Transparency Framework..................................................................................60
23.2 Pre-Trade Transparency Obligations................................................................................60
23.2.1 Excluded Reference Price and Negotiated Transactions .........................................61
23.3 Large in Scale Waiver Threshold......................................................................................61
23.4 Volume Cap Mechanism ...................................................................................................62
23.4.1 Volume Cap Mechanism Limit A...............................................................................62
23.4.2 Volume Cap Mechanism Limit B...............................................................................62
23.5 Waiver for Equity Instruments...........................................................................................63
23.6 Waiver for Non-Equity Instruments ...................................................................................65
24 POSITION LIMITS AND POSITION MANAGEMENT...........................................................66
24.1 Position Limit Objectives...................................................................................................66
24.2 Position Limits Exclusion...................................................................................................66
24.3 Position Limits Exemption .................................................................................................66
24.3.1 Ancillary Activity ........................................................................................................67
24.3.2 The TAT Test ............................................................................................................67
24.3.3 Article 3 Regulation (EU) No 648/2012 Intragroup Transactions..............................68
24.3.4 Minority of Activities at Group Level..........................................................................69

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24.3.5 TA Persons................................................................................................................69
24.3.6 The TA Test...............................................................................................................69
24.3.7 Interim Annual Calculation Periods...........................................................................70
24.3.8 TA Test Derogation 1 ................................................................................................70
24.3.9 TA Test Derogation 2 ................................................................................................70
24.4 Transactions Qualifying as Reducing Risks......................................................................70
24.4.1 Qualifying Risk-Reducing Transaction......................................................................71
24.4.2 Article 3 of Regulation (EC) No 1606/2002...............................................................71
24.5 Position Limits Methodology for Calculation .....................................................................71
24.6 Commodity Derivatives traded in different Jurisdictions ...................................................72
24.7 ESMA Opinion (Draft RTS on methodology for calculation and the application of position
limits for commodity derivatives traded on Trading Venues and EEOTCs) ..................................72
25 ESMA AMENDED RTS 21....................................................................................................73
25.1 Method for Calculating the Size of the Net Position of a Person......................................73
25.2 Method for Calculating Positions for Legal Entities within a Group ..................................73
25.3 Same commodity derivatives ............................................................................................73
25.3.1 Significant Volume.....................................................................................................73
25.4 OTC Contracts Economically Equivalent to Commodity Derivatives................................74
25.5 Positions Qualifying as Reducing Risks Directly Related to Commercial Activities .........74
25.6 Applying for a Position Limit Exemption............................................................................74
25.7 Position Limit Methodology ...............................................................................................75
25.7.1 Baseline Figure for Spot Month Limits......................................................................75
25.7.2 Baseline Figure for Other Months' Limits..................................................................75
25.7.3 Baseline Figure for Certain Contracts.......................................................................76
25.8 Factors Relevant for the Calculation of Position Limits.....................................................76
25.8.1 New and Illiquid Contracts ........................................................................................76
25.9 Position Management Controls.........................................................................................78
25.10 NCA More Restrictive Limits .........................................................................................79
25.11 Position Management Powers ......................................................................................79
25.12 Position Management Powers Objectives ....................................................................80
26 POSITION REPORTING.......................................................................................................83
26.1 Commitment of Trader Report ..........................................................................................83
26.1.1 Position Reporting Threshold Conditions..................................................................84
26.2 Position Report..................................................................................................................84
26.3 Position Holder Classification............................................................................................85
26.4 Reporting Deadlines..........................................................................................................85
26.5 CoT and Position Report Formats.....................................................................................85
CHAPTER 4: ORGANISATIONAL REQUIREMENTS, CONDUCT OF BUSINESS RULES AND
INVESTOR PROTECTION ...................................................................................................................92
27 ABBREVIATIONS .................................................................................................................92
28 REGISTRATION AND AUTHORISATION............................................................................93
28.1 Member State Responsibilities..........................................................................................93

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28.2 Scope of Authorisation ......................................................................................................93
28.3 Granting Authorisation ......................................................................................................94
28.4 Withdrawal of Authorisation ..............................................................................................94
29 CLIENT CLASSIFICATION AND ELIGIBLE COUNTERPARTIES.......................................94
29.1 Professional Clients ..........................................................................................................95
29.2 Clients Treated as Professional Clients on Request (Elective Professional Client) .........96
29.3 Eligible Counterparty.........................................................................................................97
30 INVESTMENT SUITABILITY AND APPROPRIATENESS ...................................................98
30.1 Assessment of Suitability and Appropriateness................................................................98
30.1.1 Investment Advice Services and Portfolio Management Services............................98
30.1.2 Other Investment Services........................................................................................98
30.1.3 Investment Services (Execution or Reception/Transmission of Orders) ..................99
30.1.4 Investment Advice or PMS that involve switching investments ..............................100
30.2 Assessment of Suitability ................................................................................................100
30.3 Client Information ............................................................................................................100
30.4 Investment Firm Client Assumptions...............................................................................101
30.5 Client Financial Situation Information..............................................................................101
30.6 Client Investment Objectives Information .......................................................................101
30.7 Clients (Legal Persons and Groups of Natural Persons)................................................101
30.8 Internal Policies and Procedures ....................................................................................102
30.9 Retail Client Investment Advice Report ..........................................................................102
30.10 General Retail Client Obligations................................................................................102
30.11 Retail Client Suitability Statement...............................................................................103
30.12 Residential Immovable Property Credit Agreement....................................................103
30.13 Delegated Acts............................................................................................................103
31 MARKET OPERATOR ........................................................................................................103
32 PRODUCT GOVERNANCE AND APPROVAL PROCESSES ...........................................108
33 MANAGEMENT BODY REQUIREMENTS.........................................................................112
33.1 Management Body ..........................................................................................................112
33.2 Management Body Obligations.......................................................................................112
33.3 Management Body Membership Selection and Suitability..............................................113
33.3.1 Article 88 CRD IV ....................................................................................................113
33.3.2 Article 91 CRD IV ....................................................................................................114
34 MiFID II FIRM ORGANISATIONAL REQUIREMENTS ......................................................115
34.1 MiFID II Level 1 (High Level) Organisational Requirements...........................................115
34.2 Additional Member State Organisational Requirements.................................................118
34.3 MiFID II Level 2 Delegated Regulation Organisational Requirements ...........................118
34.3.1 MiFID II Level 2 General Organisational Requirements .........................................118
34.3.2 MiFID II Level 2 Specific Organisational Requirements..........................................119
34.3.3 Personal Transactions ............................................................................................123
34.3.4 Excluded Personal Transactions.............................................................................124

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35 INVESTOR PROTECTION .................................................................................................124
36 CLIENT CATEGORISATION ..............................................................................................124
37 CONFLICTS OF INTEREST...............................................................................................124
37.1 No Reasonable Confidence in Preventing Conflicts of Interest ......................................125
38 THIRD PARTY INDUCEMENTS.........................................................................................125
38.1 Investment Advice provided on an Independent Basis...................................................125
38.1.1 Independent Basis Obligations ...............................................................................125
38.1.2 Independent Basis Exemptions...............................................................................125
38.2 Portfolio Services ............................................................................................................126
38.2.1 Portfolio Services Exemptions ................................................................................126
38.3 Investment Service and Ancillary Service Inducements Prohibition...............................127
38.4 Payment or Benefit Disclosure........................................................................................127
38.5 Remuneration Policies for Investment Firms Providing Investment Services to Clients 127
38.5.1 Remuneration and Sales Targets ...........................................................................127
38.6 ESMA Consultation Paper (2014/59) (22 May 2014) (2.11 Remuneration) ...................128
39 THIRD PARTY RESEARCH INDUCEMENTS (FEES, COMMISSIONS, OR MONETARY
OR NON-MONETARY BENEFITS).................................................................................................129
39.1 Unbundling ......................................................................................................................129
39.1.1 Third Party Research Inducement Conditions ........................................................130
39.1.2 Research Charge ....................................................................................................131
39.1.3 Rebate and Offset ...................................................................................................131
39.1.4 Research Budget.....................................................................................................131
39.1.5 Client Information ....................................................................................................131
39.1.6 Research Quality.....................................................................................................131
39.1.7 Execution Services..................................................................................................131
39.2 Common Sharing Agreements........................................................................................132
39.3 Commentary....................................................................................................................132
40 COMPLIANCE FUNCTION.................................................................................................132
40.1 MiFID II Compliance Measures, Policies, and Procedures (CMPP)...............................132
40.1.1 Compliance Function Exemption ............................................................................133
41 RECORD KEEPING............................................................................................................134
41.1 Records of Fees, Commissions, and NMBs ...................................................................134
41.2 Retention of Records ......................................................................................................134
41.2.1 Annex IV Section 1 Delegated Regulation..............................................................135
41.2.2 Annex IV Section 2 Delegated Regulation..............................................................135
41.3 Recording of Telephone Conversations (or Electronic Communications) (Recording
Rules) 137
41.4 Informing the Client .........................................................................................................138
41.5 Face-to-Face Conversations...........................................................................................138
41.5.1 Records Properties..................................................................................................139
CHAPTER 5: THE THIRD COUNTRY FIRM FRAMEWORK ...........................................................140
42 ABBREVIATIONS ...............................................................................................................140

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43 THE THIRD COUNTRY FIRM FRAMEWORK ...................................................................141
43.1 TCF Branch Authorisation...............................................................................................142
43.2 Article 26 OECD Model Tax Convention.........................................................................144
43.3 Provision of Services at the Exclusive Initiative of the Client..........................................145
43.4 Withdrawal of Authorisation ............................................................................................145
43.5 Factors Influencing TCF Authorisation............................................................................145
43.6 FATF High Risk and Non-Cooperative Jurisdictions.......................................................145
43.7 TCF Investment Services and Activities Without a Branch.............................................146
43.8 No Commission Equivalence Decision Exists.................................................................146
43.9 EU Commission Equivalence Decision...........................................................................146
43.10 Commission Equivalence Examination Procedure .....................................................147
43.11 Article 5 Regulation (EU) No 182/2011.......................................................................147
43.12 Equivalence Cooperation Arrangements ....................................................................148
43.13 Exchange of Information with Third Countries ............................................................148
43.14 Professional Secrecy (MiFID II Article 76) ..................................................................149
43.15 MiFIR Trading Obligation ............................................................................................150
43.16 Third Country Entity Trading Obligations....................................................................150
43.17 Third Country Trading Venues....................................................................................151
43.18 Commission Equivalent Effect Decision .....................................................................151
43.19 The G20 and Equivalent Effect Conditions .................................................................151
43.20 Passporting .................................................................................................................152
43.21 Legal and Taxation Considerations (Branch or Subsidiary) .......................................152
43.22 Commentary................................................................................................................152
CHAPTER 6: MiFIR REPORTING FRAMEWORK............................................................................153
44 ABBREVIATIONS ...............................................................................................................153
45 THE MiFIR FRAMEWORK..................................................................................................154
45.1 Full MiFIR Applicability....................................................................................................154
45.2 Title V MiFIR Applicability ...............................................................................................154
45.3 Title VI MiFIR Applicability ..............................................................................................154
45.4 Title VIII MiFIR Applicability ............................................................................................155
45.5 OTC Derivatives and Liquidity.........................................................................................155
46 TRANSPARENCY...............................................................................................................155
46.1 The New Transparency Framework................................................................................155
46.2 Pre-Trade Transparency Obligations..............................................................................156
46.2.1 Excluded Reference Price and Negotiated Transactions .......................................156
46.3 Large in Scale Waiver Threshold....................................................................................156
46.4 Volume Cap Mechanism .................................................................................................157
46.4.1 Volume Cap Mechanism Limit A.............................................................................157
46.4.2 Volume Cap Mechanism Limit B.............................................................................158
46.5 Waiver for Equity Instruments.........................................................................................159
46.6 Waiver for Non-Equity Instruments .................................................................................160

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47 MiFIR REPORTING FRAMEWORK AND OBLIGATIONS .................................................161
47.1 Trading Venue Transparency Reporting Requirements: PRE-TRADE EQUITY
INSTRUMENTS...........................................................................................................................161
47.2 Trading Venue Transparency Reporting Requirements: POST-TRADE EQUITY
INSTRUMENTS...........................................................................................................................161
47.3 Trading Venue Transparency Reporting Requirements: PRE-TRADE BONDS,
STRUCTURED FINANCE PRODUCTS, EMISSION ALLOWANCES, AND DERIVATIVES .....162
47.4 Exempt Public Transparency Reporting Arrangements..................................................162
47.5 Trading Venue Transparency Reporting Requirements: POST-TRADE BONDS,
STRUCTURED FINANCE PRODUCTS, EMISSION ALLOWANCES, AND DERIVATIVES .....162
47.6 Systemic Internaliser Transparency Reporting Requirements: EQUITY INSTRUMENTS
162
47.7 MRM Liquidity Markets....................................................................................................163
47.8 Systemic Internaliser Transparency Reporting Requirements: BONDS, STRUCTURED
FINANCE PRODUCTS, EMISSION ALLOWANCES, AND DERIVATIVES ...............................165
47.9 Investment Firm and Systemic Internaliser Transparency Reporting Requirements:
POST-TRADE SHARES, DEPOSITARY RECEIPTS, ETFs, CERTIFICATES, AND OTHER
FINANCIAL INSTRUMENTS .......................................................................................................165
47.10 ETVFI Transactions ESMA Technical Standards .......................................................166
47.11 Investment Firm and Systemic Internaliser Transparency Reporting Requirements:
BONDS, STRUCTURED FINANCE PRODUCTS, EMISSION ALLOWANCES, AND
DERIVATIVES .............................................................................................................................166
47.12 Authorisation of Deferred Publication Conditions .......................................................166
47.13 NETVFI Transactions ESMA Technical Standards.....................................................167
47.14 Trading Venue Transparency Reporting Requirements: POST-TRADE BONDS,
STRUCTURED FINANCE PRODUCTS, EMISSION ALLOWANCES, AND DERIVATIVES .....167
48 CLASSIFICATION OF INVESTMENT FIRMS....................................................................167
49 NEW REPORTABLE INSTRUMENTS ...............................................................................168
50 MiFIR TRANSACTION REPORTING OBLIGATIONS........................................................170
50.1 ESMA Transaction Reporting Technical Standards........................................................170
50.2 Investment Firms Executing Transactions in Financial Instruments...............................171
50.3 Investment Firms Transmitting Orders in Financial Instruments ....................................172
50.4 Trading Venue Operators................................................................................................172
50.5 Client Identification Standards ........................................................................................172
50.6 Natural Person Identifiers................................................................................................172
51 FLAGS.................................................................................................................................172
52 MiFIR TRANSACTION REPORTING TECHNICAL STANDARDS (RTS 22).....................178
52.1 Meaning of Transaction...................................................................................................178
52.2 MiFIR Transaction Exclusions.........................................................................................178
52.3 Meaning of Execution of Transaction..............................................................................180
52.4 MiFIR Transmission Conditions ......................................................................................180
52.5 Designation to Identify Natural Persons..........................................................................181
52.6 Nationality Identifier.........................................................................................................182
52.7 Client Identifier Details and Decision Maker Details .......................................................183
52.8 Investment Decision Identification (Person or Computer Algorithm) ..............................183

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52.9 Investment Execution Identification (Person or Computer Algorithm) ............................184
52.10 Transaction Reporting and Designations....................................................................184
52.11 Transaction Reporting and Branches..........................................................................184
52.12 Methods and Arrangements for Reporting Financial Transactions.............................185
53 EXTENDED TRANSACTION REPORT FIELDS................................................................186
54 TRANSACTION FIELD DEFINITIONS ...............................................................................187
54.1 Transaction Field Reporting Rules..................................................................................187
54.1.1 Buyer Details...........................................................................................................187
54.1.2 Buyer Decision Maker .............................................................................................187
54.1.3 Seller Decision Maker .............................................................................................187
54.1.4 Transmission Details...............................................................................................187
54.1.5 Investment Details...................................................................................................188
55 LEGAL ENTITY IDENTIFIERS AND STANDARDS ...........................................................194
56 AN OVERVIEW OF THE NEW FCA DIGITAL REGULATORY MARKET DATA
PROCESSING PLATFORM (RMDPP) ...........................................................................................195
56.1 Implementation of Transaction Reporting in the UK .......................................................195
56.2 Features and Service Level Agreement Specifications ..................................................195
56.3 Solution Partners.............................................................................................................196
56.4 Transaction Reporting: Data to be Reported ..................................................................196
APPENDIX 1: MiFID II and MiFIR Abbreviations ............................................................................197
APPENDIX 2: MiFID II AND MiFIR DEFINITIONS ...........................................................................204
APPENDIX 3: MiFID I (Directive 2004/39/EC)..................................................................................221
APPENDIX 4: Review of the Markets in Financial Instruments Directive (2010) ........................318
APPENDIX 5: MiFID II (Directive 2014/65/EU).................................................................................327
APPENDIX 6: MiFIR (Regulation (EU) No 600/2014) ......................................................................460
APPENDIX 7: Proposal to Amend MiFID II (10
th
February 2016) ..................................................520
APPENDIX 8: MiFID, MiFID II, and MiFIR Technical Standards (Last Updated 25/11/206).........526
APPENDIX 10: Markets in Financial Instruments Directive (MiFID II): Frequently Asked
Questions...........................................................................................................................................532

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LIST OF TABLES
Table 1: Chapter 1 Abbreviations......................................................................................................13
Table 2: MiFID operational framework..............................................................................................21
Table 3: MiFID II Exempt Firm............................................................................................................22
Table 4: MiFID II Investment Services and Activities ......................................................................26
Table 5: MiFID II Ancillary Services...................................................................................................27
Table 6: MiFID II definitions of financial instruments and investment services and activities...28
Table 7: Chapter 2 Abbreviations......................................................................................................30
Table 8: MiFID II MTF Overall Requirements....................................................................................32
Table 9: MTF Specific Requirements ................................................................................................32
Table 10: MiFID II OTF Overall Requirements ..................................................................................38
Table 11: OTF Specific Requirements ..............................................................................................38
Table 12: SME Growth Market Requirements ..................................................................................42
Table 13: Best Execution Criteria......................................................................................................44
Table 14: Data Reporting Services Providers ..................................................................................45
Table 15: APA Information .................................................................................................................48
Table 16: CTP Financial Instruments................................................................................................49
Table 17: CTP Information..................................................................................................................50
Table 18: CTP Public Information......................................................................................................51
Table 19: MiFID II Common Flags......................................................................................................53
Table 20: MiFID II Delegated Regulation (4390 Final) Post-Trade Transparency Flag Codes.....53
Table 21: MiFID II RTS 2 Post-Trade Transparency Flag Codes (Bonds, Structured Finance
Products, Emission Allowances and Derivatives)...........................................................................56
Table 22: MiFID II RTS 2 Post-Trade Transparency Supplementary Deferral Flag Codes ..........57
Table 23: Chapter 3 Abbreviations....................................................................................................59
Table 24: Orders large in scale compared with normal market size for shares and depositary
receipts.................................................................................................................................................61
Table 25: Orders large in scale compared with normal market size for certificates and other
similar financial instruments .............................................................................................................61
Table 26: Standard market sizes .......................................................................................................62
Table 27: Waivers for Equity Instruments ........................................................................................63
Table 28: Waivers for Equity Instruments ........................................................................................65
Table 29: The TAT Test.......................................................................................................................67
Table 30: MiFID II Ancillary Activity Thresholds..............................................................................68
Table 31: The TA Test.........................................................................................................................69
Table 32: Derivatives Risk Criteria ....................................................................................................70
Table 33: Qualifying Risk-Reducing Transaction Criteria ..............................................................71
Table 34: PLMC Factors .....................................................................................................................72
Table 35: Commercial Activity Risk Information .............................................................................74

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Table 36: Position Limit Relevant Factors........................................................................................76
Table 37: PLMC Factors .....................................................................................................................78
Table 38: ESMA Position Limits Technical Standards....................................................................79
Table 39: ESMA Position Management Powers...............................................................................80
Table 40: ESMA Position Management Objectives .........................................................................80
Table 41: Orderly Functioning Criteria and Factors........................................................................81
Table 42: ESMA Position Management Powers...............................................................................82
Table 43: Criteria Specifying Situations where a Risk of Regulatory Arbitrage may arise.........83
Table 44: Position Holder Classification ..........................................................................................85
Table 45: Commitment of Trader Report ..........................................................................................86
Table 46: Symbol Table for Commitment of Trader Report............................................................87
Table 47: Table of Fields to be Reported..........................................................................................88
Table 48: Format for Position Reports by Investment Firms .........................................................89
Table 49: Table of Fields for Position Reports by Investment Firms ............................................90
Table 50: Chapter 4 Abbreviations....................................................................................................92
Table 51: Grounds for Withdrawal of Authorisation .......................................................................94
Table 52: Per Se Professional Client Entity......................................................................................95
Table 53: Assessment of Suitability Information.............................................................................98
Table 54: Investment Services Information Exception Conditions ...............................................99
Table 55: Product Governance Requirements...............................................................................108
Table 56: Firm Organisational Requirements ................................................................................115
Table 57: MiFID II Level 2 Firm Organisational Requirements .....................................................118
Table 58: MiFID II Level 2 Specific Organisational Requirements ...............................................119
Table 59: Quality of Service Enhancement Conditions ................................................................126
Table 60: TPRI Conditions................................................................................................................130
Table 61: TPRI Operational Requirements .....................................................................................130
Table 62: MiFID II Compliance Function Responsibilities ............................................................132
Table 63: MiFID II Compliance Function Conditions .....................................................................133
Table 64: MiFID II Retention of Records Criteria............................................................................134
Table 65: Chapter 5 Abbreviations..................................................................................................140
Table 66: TCF Regulated Business and Passporting Rights .......................................................141
Table 67: TCF Branch Conditions ...................................................................................................142
Table 68: TCF Branch Information ..................................................................................................143
Table 69: Factors Influencing TCF Authorisation..........................................................................145
Table 70: Equivalent Effect Conditions ..........................................................................................147
Table 71: Information Functions .....................................................................................................149
Table 72: The G20 and Equivalent Effect Conditions....................................................................151
Table 73: Chapter 6 Abbreviations..................................................................................................153
Table 74: MiFIR governed firms.......................................................................................................155

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Table 75: Orders large in scale compared with normal market size for shares and depositary
receipts...............................................................................................................................................156
Table 76: Orders large in scale compared with normal market size for certificates and other
similar financial instruments ...........................................................................................................156
Table 77: Standard market sizes .....................................................................................................157
Table 78: Waivers for Equity Instruments ......................................................................................159
Table 79: Waivers for Equity Instruments ......................................................................................160
Table 80: MRM Liquidity Markets Rules .........................................................................................163
Table 81: MRM Liquidity Markets Rules .........................................................................................164
Table 82: MiFID II definitions of multilateral system, investment firm, and market operator ...167
Table 83: MiFID II definitions of financial instruments and investment services and activities
............................................................................................................................................................168
Table 84: MiFIR Transaction Reporting Financial Instruments....................................................171
Table 85: MiFID II Common Flags....................................................................................................173
Table 86: MiFID II Delegated Regulation (4390 Final) Post-Trade Transparency Flag Codes...173
Table 87: MiFID II RTS 2 Post-Trade Transparency Flag Codes (Bonds, Structured Finance
Products, Emission Allowances and Derivatives).........................................................................176
Table 88: MiFID II RTS 2 Post-Trade Transparency Supplementary Deferral Flag Codes ........177
Table 89: MiFIR Transaction Exclusions ........................................................................................178
Table 90: MiFIR order details ...........................................................................................................181
Table 91: National client identifiers for natural persons to be used in Transaction Reports...182
Table 92: MiFIR financial transaction reporting Methods and Arrangements............................185
Table 93: MiFIR Transaction report fields ......................................................................................188
Table 94: MiFIR LEI Principles.........................................................................................................194

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LIST OF FIGURES
Figure 1: The Three MiFID Pillars.........................................................................................................15
Figure 2: MiFID II and EU Regulation ...................................................................................................17
Figure 3: The Road to MiFID III ............................................................................................................17
Figure 4: MiFID II Areas........................................................................................................................19
Figure 5: Transaction Reporting Network Environment......................................................................195