The MiFID II, an analysis on the German and Italian Sovereign Bond Market

Abstract

In this thesis I will analyse the main effects of application of the up-to-date European regulation on financial markets. The first chapter will be about the regulatory part of the MiFID II and MiFIR. It will explain in particular the main pillars established by the regulation. We will see in detail the new financial market structure established by the directive and the new rules on the client’s protection. Moreover, we will focus on the pre and post-trade transparency as the main aspect of this thesis. In the second chapter, the starting point of the quantitative research will be exposed in detail. The aim of this thesis is to detect the reactions of the European sovereign bond market to the enforcement of the MiFID II. As a specific sector and a starting point for future researches, this thesis considers the Italian and the German bond market in a period before and after the enforcement of the MiFID II, 3 January 2018. The sample of the analysis considers the sovereign bonds of these two countries taken from the most liquid bonds list. In the third chapter the results of the research will be exposed with a theoretical explanation and the graphs taken from the quantitative analysis.