4.1 MiFID I sought to increase market integrity and enhance competition by setting requirements for trading venues and market-makers to publish bids and offers before a trade has been completed (this is known as pre-trade transparency) and publicly disclose executed trades (this is known as post-trade transparency). MiFID II extended these requirements beyond equity instruments to equity-like instruments, such as depositary receipts and exchange traded funds (ETFs). It also introduced restrictions on where and how shares can be traded.
4.2 The government believes that preand post-trade transparency can facilitate price formation and aid best execution. This in turn encourages competition if it is applied effectively to the correct instruments. The government believes that there is scope to simplify the MiFID II transparency regime by removing restrictions that have not aided price formation, whilst preserving a diverse market structure that balances investors' choice and market integri
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