MiFID Monitor Q2 2026

• Published date: 20 July 2026
• Subject Matter: Finance and Banking, Wealth Management, Privacy, Financial Services, Wealth & Asset Management, Data Protection
• Law Firm: Dillon Eustace
• Author: Mr Keith Waine, Karen Jennings and Brian McGlone

For further information on any of the issues discussed in this publication please contact the related contact(s) on this page.

1 MiFID Framework developments

1.1 Delegated Regulation on order execution policies

On 14 April 2026, the European Commission adopted a Delegated Regulation supplementing the MiFID II Directive¹ with regard to regulatory technical standards (RTS) specifying the criteria for establishing and assessing the effectiveness of order execution policies of investment firms.

The Delegated Regulation, which was made under Article 27(10) of the MiFID II Directive, is based on draft RTS developed by ESMA.

The proposed changes include:

• Specifying criteria for the selection of execution venues to maximise results when executing client orders;

• Introducing requirements for monitoring and the periodic assessment of investment firms' order execution policies;

• Setting out rules on order routing and the use of automatic execution systems;

• Establishing safeguards for handling specific client instructions and managing conflicts of interest, including when dealing on own account;

• Requiring the identification of classes and subclasses of financial instruments to support effective assessment of execution quality;

• Repealing two previous Delegated Regulations²;

The Delegated Regulation can be accessed here.

1.2 Simplification of transaction reporting under MiFIR

On 4 May 2026, ESMA published an interim report following its June 2025 Call for Evidence (CfE) on a comprehensive approach to simplifying transaction reporting under MiFIR³, EMIR⁴ and SFTR⁵. The CfE sought to identify key cost drivers and gather stakeholder views on improving the current framework.

The issues raised in the report, such as overlapping and inconsistent requirements and fragmented reporting channels, reflect the current reporting landscape. The report expresses support for simplification principles centred on preserving information value and adopting a cost-benefit-driven approach.

Having refined its approach, ESMA will now focus on delineation by type of instrument and a “report once” model. Medium-term measures such as streamlining reporting channels, leveraging alternative technologies and reducing reporting frequency are also considered in the interim report.

The Final Report, which will incorporate recommendations and an independent cost-benefit analysis, will be published by July 2026.

The Interim Report can be accessed here.

1.3 EU code of conduct for issuer-sponsored research

On 21 May 2026, the European Commission adopted a Delegated Regulation⁶ setting out RTS on an EU code of conduct for issuer‑sponsored research under MiFID II.

The Delegated Regulation aims to revitalise EU investment research, particularly for under‑covered issuers.

Key measures include:

• A harmonised EU code of conduct (Annex to the Delegated Regulation) covering independence, conflicts, disclosures and remuneration;

• Requirements to clearly label issuer‑sponsored research;

• Obligations on firms to verify compliance before distributing such research; and

• Safeguards to ensure research objectivity, independence, and to limit issuer influence.

The Delegated Regulation establishes a consistent EU framework to support the broader use of issuer‑funded research while maintaining investor protection. It is expected to increase research coverage, improve liquidity and transparency, and impose stricter controls on distribution practices.

The Delegated Regulation can be accessed here.

1.4 Volume cap and transparency calculations

On 1 June 2026, the European Commission published a Delegated Regulation⁷ in the Official Journal of the European Union, amending RTS in a previous Delegated Regulation⁸ on the volume cap and transparency calculations under MiFIR.

The amendments reflect MiFIR II⁹, including the move from a double volume cap to a single 7% EU-wide volume cap and the use of transaction reporting data for transparency calculations.

Key changes include:

• The removal of obsolete systematic internaliser data requirements;

• The use of Article 26 transaction data for volume cap calculations and the deletion of related reporting templates;

• The use of XML format for periodic reporting, with flexible formats for ad hoc requests;

• A five-year data retention policy for trading venues, APAs and CTPs; and

• A direct reporting procedure to ESMA for derivatives and updated quarterly publication requirements.

The Regulation entered into force on 20 June 2026.

The Directive can be accessed here.

1.5 Amendments to MiFID II research provisions

On 2 June 2026, the European Commission published a Commission Delegated Directive¹⁰, which amends the MiFID II Delegated Directive¹¹ in relation to the conditions for providing third-party execution services and research to investment firms that provide portfolio management or other investment or ancillary services.

The amendments reflect changes introduced by a Directive¹² under the Listing Act package and aim to...