Background
5.1 Following the financial crisis of 2008, the G20 committed to improve the transparency and resiliency of trading in OTC derivatives and protect against market abuse. To achieve these objectives and more broadly strengthen Europe's financial markets, MiFID II significantly extended the transparency regime which originally applied only to shares to bonds, exchange traded notes (ETNs), exchange traded commodities (ETCs), structured finance products, emission allowances and derivatives. It also introduced the Derivatives Trading Obligation (DTO) in an attempt to bring more derivatives trading onto venues with the aim of increasing transparency. The government continues to support the G20 commitment to improve transparency, where appropriate, as it believes it plays an important role in the price formation process if it is applied to the correct instruments. However, evidence shows that the MiFID II regime has achieved little meaningful transparency, and has had limited impact
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