On December 14, the following decisions (Implementing Decisions) on the equivalence of the legal and supervisory frameworks of certain third countries, in accordance with Article 25(4)(a) of the revised Markets in Financial Instruments Directive (MiFID II), were published in the Official Journal of the EU (OJ):

• European Commission Implementing Decision ((EU) 2017/2318) on the equivalence of the legal and supervisory framework in Australia applicable to financial markets in accordance with MiFID II.
• European Commission Implementing Decision ((EU) 2017/2319) on the equivalence of the legal and supervisory framework applicable to recognised exchange companies in Hong Kong Special Administrative Region in accordance with MiFID II.
• European Commission Implementing Decision ((EU) 2017/2320) on the equivalence of the legal and supervisory framework of the United States of America for national securities exchanges and alternative trading systems in accordance with MiFID II.

Article 23(1) of the Markets in Financial Instruments Regulation (MiFIR) requires investment firms to undertake trades in certain shares only on regulated markets, multilateral trading facilities (MTFs), systematic internalizers (SIs) or third-country trading venues that have been assessed by the European Commission as equivalent in accordance with Article 25(4)(a) of MiFID II (as amended by Directive (EU) 2016/1034).

The Implementing Decisions deem the legal and supervisory frameworks of Australia, Hong Kong and the US applicable to the markets specified in each of the Implementing Decisions to be equivalent to the EU’s frameworks for the purposes of Article 25(4)(a) of MiFID II.

The Implementing Decisions go into effect on December 15.