On 17 October 2025, Law 183(I)/2025 was published in the Official Gazette of the Republic of Cyprus, amending the Investment Services and Activities and Regulated Markets Law of 2017. The Law transposes Directive (EU) 2024/790 into national legislation, amending provisions of MiFID II (Directive 2014/65/EU).
Key Amendments Introduced
The amendments introduce a clear prohibition on payment for order flow (PFOF). Cyprus law is now fully aligned with the EU-wide ban, ensuring transparency and fair treatment of clients in order execution.
Best execution reports under RTS 27 and RTS 28 are now abolished. Cypriot Investment Firms that were previously obligated to generate such reports are no longer obligated to do so. ESMA had previously indicated that National Competent Authorities should not focus supervisory activities on these reports, effectively suspending the obligation in practice. With these amendments, the obligation has now been formally abolished.
Investment Firms are now required to assess their execution arrangements on a frequent basis and inform clients of any material changes. ESMA will develop technical standards specifying the factors determining the choice of execution venues and the frequency of assessing and updating the execution policy, etc. These standards have not yet been published.
Additional Revisions
The amendments also update:
- The definitions of Systematic Internalisers (SIs) and Multilateral Trading Facilities (MTFs). The quantitative tests for determining whether a firm qualifies as an SI have been removed, leaving in place qualitative requirements for equity instruments, with the possibility of “opting in” as an SI.
- Operating conditions for regulated markets, including provisions allowing trading halts or constraining trading in emergencies and aligning tick sizes for dual-listed shares traded in non-EEA venues under certain conditions.
- Position limits and position management controls for commodity derivatives and derivatives of emission allowances.
These developments form part of the broader EU effort to simplify and clarify the MiFID II/MiFIR framework, promoting consistent supervisory practices across Member States.
For more information please have a look at our previous article on the subject matter (https://www.mapsplatis.com/news/mifid-ii-and-mifir-review-key-changes-and-implications/).
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