The European Parliament has voted to approve the revised Markets in Financial Instruments Regulation (MiFIR) and Markets in Financial Instruments Directive (MiFID II). With this approval comes confirmation for the establishment of EU-wide consolidated tapes and a general ban on payment for order flow (PFOF).

Three consolidated tapes are currently expected to be set up – one for bonds, to be operational by mid-2025, one for equities by early 2026, and one for derivatives planned for later in 2026. Member states where PFOF is currently allowed have until 30 June 2026 before they are required to phase it out.

The European Securities and Markets Authority (ESMA) has been tasked with defining the technical standards of these changes. It will also assess the establishment of a consolidated tape for shares, including the potential for additional features to the equity pre-trade tape, by 30 June 2026.