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MiFID II rules are transposed in Romania


Bucharest, 28.06.2018 - Law no. 126/2018 on financial instruments markets, which transposes the provisions of the Directive 2014/65 / EU of the European Parliament and of the Council of May, 15 2014 on financial instruments markets and amending the Directive 2002/92 / EC and the Directive 2011/61 / EU (MiFID II) was published in the Official Gazette of Romania no. 521 of the 26th of June 2018.

The law aims at improving investors’ protection, increasing market transparency by expanding pre- and post-trade requirements, promoting trading and clearing competition.

"One of the fundamental objectives of the ASF is to protect consumers / investors, and the new legislative provisions provide a new perspective in this respect, beneficial to those who invest in the capital market," said the President of the ASF, Mr. Leonardo Badea.

The law introduces novelties such as: a new trading structure - OTF, new concepts - algorithmic trading, high frequency algorithmic trading. The list of financial instruments expands with a new category - greenhouse gas emission certificates and derivatives on them.

"From the point of view of the impact of the new provisions, it will be a significant one on the capital market, by changing the market architecture and the way the transactions are carried out. The normative act completes the legislative framework, outlined in the last five years, which governs the financial instruments and investments sector, "said ASF’s Vice President, Mr. Mircea Ursache.

At the same time, new entities will be set up as a result of the extension of transaction reporting obligations: Approved Publication Mechanism (APM), Centralized Reporting System Provider (CTP), Approved Reporting Mechanism (ARM). Also, for commodity derivatives markets, provisions are made for reporting positions, reducing systemic risk and speculative activity by quantitatively limiting holdings of positions.

Law no. 126/2018 on the financial instruments markets are to enter into force 10 days from the date of its publication in the Official Gazette of Romania.

 

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About ASF

 

ASF is the national authority set up in 2013 through GEO 93/2012 approved by Law 113/2013 for the regulation and supervision of insurance markets, private pensions and the capital market. ASF contributes to strengthening the integrated operating framework of the three sectors, which sums up over 10 million participants. More information can be found at www.asfromania.ro.