Revocation of retained EU law Transitional amendments Amendments to the Markets in Financial Instruments Regulation (MiFIR) and the European Market Infrastructure Regulation (EMIR) Wholesale capital markets regulation
Wholesale capital markets regulations govern the buying, selling and organised trading of financial instruments, such as shares, bonds and derivatives, between professional investors and companies.
	Wholesale capital markets are where a range of firms and investors from across the financial services sector come together to raise short- and long-term finance to grow. This includes, but is not limited to, market infrastructure providers and exchanges, data providers and investment firms, such as investment banks and asset managers.
	Many of the rules that directly govern the buying, selling and organised trading of transferable financial instruments are set out in the Markets in Financial Instruments Regulation (MiFIR). MiFIR is one of two pieces of EU legislation (the other being the second Markets in Financial Instruments Directive (MiFID II)) which together underpin what is referred to as the MiFID II framework. As part of the onshoring process, the MiFID II framework was amended to address deficiencies arising as a result of the UK’s withdrawal from the EU and the end of the Transition Period.
	The UK played a significant role in designing the MiFID II framework, and the government believes that the resilience and effectiveness of the UK’s capital markets has been significantly strengthened by the post-crisis reforms that it implemented. Although the regime is working well in many areas, the EU approach to regulation - where the same rules apply across member states in order to facilitate a single market in financial services - means that MiFID II framework requirements are not calibrated solely for UK markets. In some areas, it has not delivered its intended benefits, has led to duplication and excessive administrative burdens for firms, or has stifled innovation. Following the UK’s exit from the EU, in July 2021, the government launched the Wholesale Markets Review (WMR) consultation with the aim of creating a simpler and less prescriptive regime that meets the needs of UK markets while maintaining high regulatory standards.
	The Act delivers the priority measures identified through the WMR consultation and aims to improve competitiveness and increase the flexibility of wholesale markets regulation by making nine sets of changes to the MiFID II framework.