What this chapter covers
The Markets in Financial Instruments Regulation (MiFIR, Regulation (EU) No 600/2014) has applied directly in every Member State since 3 January 2018, alongside the MiFID II Directive that Cyprus transposed in Law 87(I)/2017. The first notes cover MiFIR's scope, trade transparency for shares and similar instruments, the pre-trade waivers and the volume cap.
The middle notes deal with transparency for bonds, derivatives and other non-equity instruments, and with systematic internalisers, the firms that deal on own account against client orders outside trading venues. The last group covers transaction reporting, order records and reference data, and the obligations to trade and clear derivatives.
The MiFIR review, Regulation (EU) 2024/791, entered into force on 28 March 2024 and changed much of what the exam material describes: a single EU-wide volume cap, narrower non-equity transparency and new quote sizes for systematic internalisers. Some changes applied at once, and others later as new technical standards took effect. ESMA has also authorised and supervised data reporting service providers since 2022. Each note teaches what the exam tests and says what applies today.
The 9 topics
Each note starts with a short answer and a table of the facts to remember.
Scope and equity transparency
- What does MiFIR cover, and whom does it apply to?What MiFIR regulates, who it applies to, and how it fits with MiFID II and Law 87(I)/2017.8 min
- What must trading venues publish before and after trades in shares and ETFs?Pre-trade and post-trade transparency for shares, ETFs and similar instruments, and deferred publication.7 min
- When can a venue trade shares without pre-trade transparency?The four pre-trade waivers for equity, ESMA's opinion and when CySEC withdraws a waiver.4 months7 min
- How does the volume cap limit dark trading under equity waivers?The single 7% EU-wide cap on trading under the reference price waiver, and the old double volume cap.7%3 months8 min
Non-equity and OTC trading
- What transparency applies to bonds, derivatives and other non-equity instruments?Transparency for bonds, derivatives and emission allowances, the waivers that remain, and deferred publication.3 months9 min
- What must a systematic internaliser quote, and how must it execute client orders?Who counts as a systematic internaliser, quoting duties, quote sizes since November 2025 and execution at the quoted price.7 min
Reporting and derivatives
- Which transactions must be reported to CySEC, by when, and how?Which transactions are reported, by when and through whom, and who corrects errors.Next working day9 min
- What order records and instrument reference data does MiFIR require?Keeping order and transaction records, and sending instrument reference data to ESMA.5 years7 min
- Where must derivatives be traded and cleared, and how is portfolio compression treated?The trading obligation for derivatives, clearing of derivatives concluded on regulated markets, and post-trade risk reduction.8 min
The numbers to know
Every figure in this chapter, with the note that explains it.
| Figure | What it is | Note |
|---|---|---|
| 7% · 12 months | Share of all EU trading in a share, over the previous 12 months, above which venues stop using the reference price waiver for three months | Topic 4: How does the volume cap limit dark trading under equity waivers? |
| 4 months | Minimum notice CySEC gives ESMA and other authorities before a pre-trade waiver starts | Topic 3: When can a venue trade shares without pre-trade transparency? |
| 3 months | Longest period for which CySEC may suspend non-equity transparency at a time, renewable, if liquidity falls | Topic 5: What transparency applies to bonds, derivatives and other non-equity instruments? |
| 2 × SMS | Size up to which a systematic internaliser's quoting duties apply since 23 November 2025 (SMS: standard market size) | Topic 6: What must a systematic internaliser quote, and how must it execute client orders? |
| Next working day | Latest time for reporting a transaction to the competent authority: the close of the following working day | Topic 7: Which transactions must be reported to CySEC, by when, and how? |
| 5 years | How long investment firms keep the relevant data on every order and transaction | Topic 8: What order records and instrument reference data does MiFIR require? |