To strengthen the capital markets, the European Commission set out to establish a more effective supervisory framework for investment firms. The new regime entered into force in December 2019, recognizing the special role of investment firms in the overall functioning of the EU financial markets by simplifying the rules for investment firms and facilitating investment flows throughout the EU. The Investment Firms Regulation and Directive (IFR/D) are designed to ensure that key prudential requirements for investment firms are adequately set and that compliance with them is monitored.

For example, IFR/D introduces a classification scheme, divided into four categories, according to which capital requirements for investment firms are determined. The so-called “K-factors” are calculated for each individual firm, based on the various risks in the respective activities of the investment firm, which determine its classification and the final level of capital requirements. In addition, the regulation lays down the conditions under which investment firms located in non-EU countries may obtain market access to the European single market. At the same time, it strengthens the supervisory powers of the European Securities and Markets Authority (ESMA).
 
The European Commission has initiated a review of the IFR/IFD regime in 2024.

The aim is to assess: 

• How effective and proportionate the prudential regime is;
• Whether adjustments are necessary, e.g. to thresholds for classification as systemically important companies;
• How ESG risks can be better integrated.

To this end, EBA and ESMA published a call for advice on the discussion paper on the potential review of the investment firms’ prudential framework. Following their report, a possible legislative proposal to amend the IFR/IFD could follow in 2026.

As an operator of regulated markets, Deutsche Börse Group welcomed the new rules, as they acknowledge and support the important contribution of investment firms to trading and liquidity provision.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

To strengthen the capital markets, the European Commission set out to establish a more effective supervisory framework for investment firms. The new regime entered into force in December 2019, recognizing the special role of investment firms in the overall functioning of the EU financial markets by simplifying the rules for investment firms and facilitating investment flows throughout the EU. The Investment Firms Regulation and Directive (IFR/D) are designed to ensure that key prudential requirements for investment firms are adequately set and that compliance with them is monitored.

For example, IFR/D introduces a classification scheme, divided into four categories, according to which capital requirements for investment firms are determined. The so-called “K-factors” are calculated for each individual firm, based on the various risks in the respective activities of the investment firm, which determine its classification and the final level of capital requirements. In addition, the regulation lays down the conditions under which investment firms located in non-EU countries may obtain market access to the European single market. At the same time, it strengthens the supervisory powers of the European Securities and Markets Authority (ESMA).
 
The European Commission has initiated a review of the IFR/IFD regime in 2024.

The aim is to assess: 

• How effective and proportionate the prudential regime is;
• Whether adjustments are necessary, e.g. to thresholds for classification as systemically important companies;
• How ESG risks can be better integrated.

To this end, EBA and ESMA published a call for advice on the discussion paper on the potential review of the investment firms’ prudential framework. Following their report, a possible legislative proposal to amend the IFR/IFD could follow in 2026.

As an operator of regulated markets, Deutsche Börse Group welcomed the new rules, as they acknowledge and support the important contribution of investment firms to trading and liquidity provision.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

To strengthen the capital markets, the European Commission set out to establish a more effective supervisory framework for investment firms. The new regime entered into force in December 2019, recognizing the special role of investment firms in the overall functioning of the EU financial markets by simplifying the rules for investment firms and facilitating investment flows throughout the EU. The Investment Firms Regulation and Directive (IFR/D) are designed to ensure that key prudential requirements for investment firms are adequately set and that compliance with them is monitored.

For example, IFR/D introduces a classification scheme, divided into four categories, according to which capital requirements for investment firms are determined. The so-called “K-factors” are calculated for each individual firm, based on the various risks in the respective activities of the investment firm, which determine its classification and the final level of capital requirements. In addition, the regulation lays down the conditions under which investment firms located in non-EU countries may obtain market access to the European single market. At the same time, it strengthens the supervisory powers of the European Securities and Markets Authority (ESMA).
 
The European Commission has initiated a review of the IFR/IFD regime in 2024.

The aim is to assess: 

• How effective and proportionate the prudential regime is;
• Whether adjustments are necessary, e.g. to thresholds for classification as systemically important companies;
• How ESG risks can be better integrated.

To this end, EBA and ESMA published a call for advice on the discussion paper on the potential review of the investment firms’ prudential framework. Following their report, a possible legislative proposal to amend the IFR/IFD could follow in 2026.

As an operator of regulated markets, Deutsche Börse Group welcomed the new rules, as they acknowledge and support the important contribution of investment firms to trading and liquidity provision.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

To strengthen the capital markets, the European Commission set out to establish a more effective supervisory framework for investment firms. The new regime entered into force in December 2019, recognizing the special role of investment firms in the overall functioning of the EU financial markets by simplifying the rules for investment firms and facilitating investment flows throughout the EU. The Investment Firms Regulation and Directive (IFR/D) are designed to ensure that key prudential requirements for investment firms are adequately set and that compliance with them is monitored.

For example, IFR/D introduces a classification scheme, divided into four categories, according to which capital requirements for investment firms are determined. The so-called “K-factors” are calculated for each individual firm, based on the various risks in the respective activities of the investment firm, which determine its classification and the final level of capital requirements. In addition, the regulation lays down the conditions under which investment firms located in non-EU countries may obtain market access to the European single market. At the same time, it strengthens the supervisory powers of the European Securities and Markets Authority (ESMA).
 
The European Commission has initiated a review of the IFR/IFD regime in 2024.

The aim is to assess: 

• How effective and proportionate the prudential regime is;
• Whether adjustments are necessary, e.g. to thresholds for classification as systemically important companies;
• How ESG risks can be better integrated.

To this end, EBA and ESMA published a call for advice on the discussion paper on the potential review of the investment firms’ prudential framework. Following their report, a possible legislative proposal to amend the IFR/IFD could follow in 2026.

As an operator of regulated markets, Deutsche Börse Group welcomed the new rules, as they acknowledge and support the important contribution of investment firms to trading and liquidity provision.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

To strengthen the capital markets, the European Commission set out to establish a more effective supervisory framework for investment firms. The new regime entered into force in December 2019, recognizing the special role of investment firms in the overall functioning of the EU financial markets by simplifying the rules for investment firms and facilitating investment flows throughout the EU. The Investment Firms Regulation and Directive (IFR/D) are designed to ensure that key prudential requirements for investment firms are adequately set and that compliance with them is monitored.

For example, IFR/D introduces a classification scheme, divided into four categories, according to which capital requirements for investment firms are determined. The so-called “K-factors” are calculated for each individual firm, based on the various risks in the respective activities of the investment firm, which determine its classification and the final level of capital requirements. In addition, the regulation lays down the conditions under which investment firms located in non-EU countries may obtain market access to the European single market. At the same time, it strengthens the supervisory powers of the European Securities and Markets Authority (ESMA).
 
The European Commission has initiated a review of the IFR/IFD regime in 2024.

The aim is to assess: 

• How effective and proportionate the prudential regime is;
• Whether adjustments are necessary, e.g. to thresholds for classification as systemically important companies;
• How ESG risks can be better integrated.

To this end, EBA and ESMA published a call for advice on the discussion paper on the potential review of the investment firms’ prudential framework. Following their report, a possible legislative proposal to amend the IFR/IFD could follow in 2026.

As an operator of regulated markets, Deutsche Börse Group welcomed the new rules, as they acknowledge and support the important contribution of investment firms to trading and liquidity provision.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

To strengthen the capital markets, the European Commission set out to establish a more effective supervisory framework for investment firms. The new regime entered into force in December 2019, recognizing the special role of investment firms in the overall functioning of the EU financial markets by simplifying the rules for investment firms and facilitating investment flows throughout the EU. The Investment Firms Regulation and Directive (IFR/D) are designed to ensure that key prudential requirements for investment firms are adequately set and that compliance with them is monitored.

For example, IFR/D introduces a classification scheme, divided into four categories, according to which capital requirements for investment firms are determined. The so-called “K-factors” are calculated for each individual firm, based on the various risks in the respective activities of the investment firm, which determine its classification and the final level of capital requirements. In addition, the regulation lays down the conditions under which investment firms located in non-EU countries may obtain market access to the European single market. At the same time, it strengthens the supervisory powers of the European Securities and Markets Authority (ESMA).
 
The European Commission has initiated a review of the IFR/IFD regime in 2024.

The aim is to assess: 

• How effective and proportionate the prudential regime is;
• Whether adjustments are necessary, e.g. to thresholds for classification as systemically important companies;
• How ESG risks can be better integrated.

To this end, EBA and ESMA published a call for advice on the discussion paper on the potential review of the investment firms’ prudential framework. Following their report, a possible legislative proposal to amend the IFR/IFD could follow in 2026.

As an operator of regulated markets, Deutsche Börse Group welcomed the new rules, as they acknowledge and support the important contribution of investment firms to trading and liquidity provision.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

To strengthen the capital markets, the European Commission set out to establish a more effective supervisory framework for investment firms. The new regime entered into force in December 2019, recognizing the special role of investment firms in the overall functioning of the EU financial markets by simplifying the rules for investment firms and facilitating investment flows throughout the EU. The Investment Firms Regulation and Directive (IFR/D) are designed to ensure that key prudential requirements for investment firms are adequately set and that compliance with them is monitored.

For example, IFR/D introduces a classification scheme, divided into four categories, according to which capital requirements for investment firms are determined. The so-called “K-factors” are calculated for each individual firm, based on the various risks in the respective activities of the investment firm, which determine its classification and the final level of capital requirements. In addition, the regulation lays down the conditions under which investment firms located in non-EU countries may obtain market access to the European single market. At the same time, it strengthens the supervisory powers of the European Securities and Markets Authority (ESMA).
 
The European Commission has initiated a review of the IFR/IFD regime in 2024.

The aim is to assess: 

• How effective and proportionate the prudential regime is;
• Whether adjustments are necessary, e.g. to thresholds for classification as systemically important companies;
• How ESG risks can be better integrated.

To this end, EBA and ESMA published a call for advice on the discussion paper on the potential review of the investment firms’ prudential framework. Following their report, a possible legislative proposal to amend the IFR/IFD could follow in 2026.

As an operator of regulated markets, Deutsche Börse Group welcomed the new rules, as they acknowledge and support the important contribution of investment firms to trading and liquidity provision.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.

To strengthen the capital markets, the European Commission set out to establish a more effective supervisory framework for investment firms. The new regime entered into force in December 2019, recognizing the special role of investment firms in the overall functioning of the EU financial markets by simplifying the rules for investment firms and facilitating investment flows throughout the EU. The Investment Firms Regulation and Directive (IFR/D) are designed to ensure that key prudential requirements for investment firms are adequately set and that compliance with them is monitored.

For example, IFR/D introduces a classification scheme, divided into four categories, according to which capital requirements for investment firms are determined. The so-called “K-factors” are calculated for each individual firm, based on the various risks in the respective activities of the investment firm, which determine its classification and the final level of capital requirements. In addition, the regulation lays down the conditions under which investment firms located in non-EU countries may obtain market access to the European single market. At the same time, it strengthens the supervisory powers of the European Securities and Markets Authority (ESMA).
 
The European Commission has initiated a review of the IFR/IFD regime in 2024.

The aim is to assess: 

• How effective and proportionate the prudential regime is;
• Whether adjustments are necessary, e.g. to thresholds for classification as systemically important companies;
• How ESG risks can be better integrated.

To this end, EBA and ESMA published a call for advice on the discussion paper on the potential review of the investment firms’ prudential framework. Following their report, a possible legislative proposal to amend the IFR/IFD could follow in 2026.

As an operator of regulated markets, Deutsche Börse Group welcomed the new rules, as they acknowledge and support the important contribution of investment firms to trading and liquidity provision.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.