European Market Infrastructure regulation & Market in Financial Instruments Directive and their key goals and objectives

1. Exploring EMIR and
MiFID: Key Policy Goals
and Objectives
In this presentation, we will delve into the European Market Infrastructure
Regulation (EMIR) and the Markets in Financial Instruments Directive
(MiFID), understanding their key policy goals and objectives.
by Yashaswi Manepalli

2. European Market
Infrastructure Regulation
(EMIR)
• Overview of EMIR
• Key policy goals of EMIR
• Objectives of EMIR
EMIR is a comprehensive set of regulations that governs over-the-counter
(OTC) derivatives, central counterparties (CCPs), and trade repositories.
It aims to enhance transparency, mitigate systemic risks, and improve the
functioning of the derivatives market. It is introduced in THE
PITTSBURGH SUMMIT 2009.

3. EMIR - Key Policy Goals
1 Enhance Risk
Mitigation
EMIR aims to reduce
counterparty and
operational risks
associated with OTC
derivatives transactions
through mandatory
clearing and risk
mitigation techniques.
2 Promote
Transparency
The regulation requires
reporting of derivative
transactions to trade
repositories, providing
regulators with a
comprehensive overview
of market activities.
3 Strengthen CCPs
EMIR establishes
rigorous standards for
central counterparties to
ensure their resilience
and ability to manage
potential defaults.

4. EMIR - Objectives
1 Reduce Systemic Risk
EMIR seeks to mitigate systemic
risks by increasing transparency,
enhancing risk management
practices, and promoting central
clearing.
2 Improve Market Integrity
By requiring reporting and
centralized clearing, EMIR aims to
ensure the integrity and stability of
the derivatives market.
3 Protect Investors
EMIR establishes safeguards to protect investors by improving transparency, risk
management, and regulatory oversight in derivatives trading.

5. Markets in Financial
Instruments Directive (MiFID)
• Overview of MiFID
• Key policy goals of MiFID
• Objectives of MiFID
MiFID is a regulatory framework that governs investment services and
activities within the European Economic Area (EEA). It is introduced in
2007. Its key policy goals include investor protection, market
transparency, and harmonization of regulations across member states.
The objectives of MiFID are to foster fair competition, improve market
efficiency, and ensure greater investor confidence.

6. MiFID - Key Policy Goals
Investor Protection
MiFID aims to ensure that
investors receive fair
treatment and are provided
with appropriate investment
advice and products.
Market
Transparency
By increasing pre- and post-
trade transparency, MiFID
enhances market integrity
and facilitates fairer pricing
and trading practices.
Regulatory
Harmonization
MiFID harmonizes regulations
across the EEA to create a
level playing field for
investment firms and foster a
robust and efficient market.

7. MiFID - Objectives
1 Enhance Investor Protection
MiFID seeks to strengthen investor protections by requiring firms to act in
their clients' best interests and provide adequate disclosures.
2 Promote Market Efficiency
MiFID aims to increase market efficiency by promoting competition,
facilitating best execution, and improving price discovery.
3 Ensure Market Integrity
By imposing rules on market conduct and surveillance, MiFID ensures the
integrity and stability of the financial markets.

8. Conclusion
EMIR and MiFID are two significant regulatory frameworks that shape the European financial landscape.
While EMIR focuses on derivatives and risk mitigation, MiFID aims to enhance investor protection and
market transparency. Together, they contribute to a safer, more efficient, and investor-friendly financial
ecosystem in the European Union.