MiFID II - Revised Markets in Financial Instruments Directive (MiFID) and Markets in Financial Instruments Regulation (MiFIR)

MiFID II – Top ten client questions and how we can help

Here’s what we get asked most frequently by topic and how we can help.


  1. How will my use of your research services be impacted?

The MiFID II research unbundling rules prevent in-scope clients from receiving research unless they bear the cost for that research themselves or pay for it from a separate research payment account funded by specific charges to underlying investors. In-scope entities may not continue to pay for research via bundled commissions. Therefore, effective January 3, 2018, J.P. Morgan will be required to restrict access to all research content so that it is only available to out-of-scope clients or in-scope clients that pay for it on an unbundled basis.

  1. Do I need to do anything to maintain access to your research?
  1. If you are not an EEA portfolio manager and do not manage funds for, or provide investment services to, underlying clients, you are unlikely to be in-scope of the research unbundling rules and, if so, you do not need to take additional action to maintain access to J.P. Morgan’s research.
  2. If you are an EEA portfolio manager, an independent investment advisor, or an in-scope gold plated entity, and not actively engaged in discussions with us about your research provisioning, but you would like to maintain access to J.P. Morgan’s award-winning research, please register your interest to do so by completing our online form.

The online form should be completed by the person who is responsible for overseeing your access to research. It is important that you register your interest as soon as possible to ensure the least disruption to your research access.

If you have any immediate questions, please do not hesitate to reach out to your representative or email us at MiFID II Research Access.


  1. What is a Systematic Internaliser (SI)?

MiFID II defines an SI as an investment firm which, on an organized, frequent, systematic and substantial basis, deals on its own account when executing client orders outside a Regulated Market (RM), Multilateral Trading Facility (MTF), or Organised Trading Facility (OTF) without operating a multilateral system. Firms that are SIs have pre-trade quoting and post-trade reporting requirements under MiFID II. Investment firms have the ability to voluntarily opt in to be an SI from January 3, 2018, ahead of the first mandatory determination date of September 1, 2018.

  1. Will J.P. Morgan be an SI?

J.P. Morgan has decided to voluntarily opt-in to become a Systematic Internaliser (SI) for non-equity instruments, including equity derivatives, that are Traded on Trading Venue (TOTV) and will be registered as an SI in the vast majority of equity and equity-like instruments subject to the MiFID II share trading obligation. For this reason, the SI designation will apply to J.P. Morgan AG, J.P. Morgan Securities plc and JPMorgan Chase Bank N.A., London Branch.

As always, we remain committed to providing liquidity to the market and making prices for our clients. Even as we all work to implement the extensive, new regulation and prepare for its impact on our products and services, we want to ensure that trading with us remains as straightforward as possible.

  1. How will MiFID impact the reporting you provide to me?

Our decision to be an SI will shift the obligation of real-time post-trade reporting from our clients to J.P. Morgan, beginning January 3, 2018 in many cases. On a quarterly basis, we will make available to our clients information about the quality of our execution (including information regarding trades where we have provided a quote but have not executed) and, on an annual basis, we will also make available information regarding our top five execution venues.

  1. Are there any more detailed implications by asset class?

Yes, the implication of MiFID II for each product group by asset class varies and we have developed more detailed information for F&O, Cash Equities and Securities Services. Please reach out to your representative or email JPMorgan Regulatory Updates.


  1. I am a client of J.P. Morgan’s Securities Services – does MiFID II impact me?

Yes, depending on the services we provide to you, a material number of MiFID II requirements may affect your business with us, especially where the services we provide to you include any trading activities. We are introducing various changes to our existing processes which will impact the service we provide to you, please contact your relationship manager for more detailed information.


  1. I am not based in EEA, does MiFID II impact me?

MiFID II will have a global impact for a few reasons. First, clients with operations in the EEA will be affected by MiFID II. Second, non-EEA clients may be dealing in instruments traded in European regulated markets or venues, which may be impacted by the new regulation. Finally, if you trade with our EEA entities you will also be impacted.


  1. Will my contractual terms with J.P. Morgan change and do I need to do anything?

We are amending our contractual terms for our European entities primarily to reflect the requirements of the revised directive and new regulation. This update is mandatory but we do not anticipate that clients would need to negotiate our amendments or that it will involve any fundamental change to our commercial relationship with our clients. Our clients should have already started receiving these updated terms.

  1. Do I need a legal entity identifier (LEI)?

Yes. As of January 3, 2018 J.P. Morgan’s EEA entities cannot transact without having a client’s LEI recorded in its systems.

If you already have an LEI but have not yet provided it to us please email JPMorgan Regulatory Updates.

If you have not yet obtained LEIs for all of your in-scope legal entities, you can do so by contacting any LEI issuer in the industry LEI FAQ.

As always, we are committed to making the transition to and after MiFID II as smooth as possible for our clients.

If you have any questions, please do not hesitate to reach out to your J.P. Morgan representative or email JPMorgan Regulatory Updates.


Conflicts of Interest

Costs and Charges

Execution Policy

Execution Venue Reporting



This supplement should be read in conjunction with the Terms of Business for investment business conducted by, or any other specific product document for investment business conducted by, J.P. Morgan Securities plc, J.P. Morgan Europe Limited (and any of its branches established in the EEA), JPMorgan Chase Bank, National Association (London Branch, or any other of its branches established in the EEA), J.P. Morgan Limited, J.P. Morgan Markets Limited, J.P. Morgan Bank (Ireland) plc, J.P. Morgan Bank Luxembourg S.A. and J.P. Morgan AG (together J.P. Morgan).

Where you are subject to restrictions under regulatory rules applicable to you on the receipt of fees or commissions or the provision or receipt of non-monetary benefits (other than acceptable minor non-monetary benefits), in both cases to or from third parties, you are responsible for compliance with these requirements and must assess whether any non-monetary benefit we may provide to you is in compliance with the regulatory rules as they apply to you. Accordingly, we provide no assurance that any non-monetary benefit we may provide to you complies with the regulatory rules as they apply to you.

We may provide you with certain acceptable minor non-monetary benefits listed in the relevant EEA member state national implementation of Article 12(3) of Commission Delegated Directive (EU) 2017/593, which may include:

  • information or documentation relating to a financial instrument or an investment service, that is generic in nature or personalised to reflect the circumstances of an individual client;
  • written material from a third party that is commissioned and paid for by a corporate issuer or potential issuer to promote a new issuance by the company, or where the third party firm is contractually engaged and paid by the issuer to produce such material on an ongoing basis, provided that the relationship is clearly disclosed in the material and that the material is made available at the same time to any investment firms wishing to receive it or to the general public;
  • participation in conferences, seminars and other training events on the benefits and features of a specific financial instrument or an investment service;
  • hospitality of a reasonable de minimis value, such as food and drink during a business meeting or a conference, seminar or other training events mentioned above; and
  • other minor non-monetary benefits which an EEA member state deems capable of enhancing the quality of service provided to a client and, having regard to the total level of benefits provided by one entity or group of entities, are of a scale and nature that are unlikely to impair compliance with an investment firm's duty to act in the best interest of the client.

Other minor non-monetary benefits:

Pursuant to the relevant EEA member state national implementation of Article 11(5)(a) of Commission Delegated Directive (EU) 2017/593, certain minor non-monetary benefits that J.P. Morgan may provide or receive, may be described in a generic way and these may include:

  • Gifts and entertainment up to a value determined from time to time in J.P. Morgan’s policies
  • Marketing material in the ordinary course of business (excluding marketing material that constitutes research)
  • Trade ideas and commentary (excluding ideas or commentary that constitutes research)
  • Training sessions in the ordinary course of business
  • Deal and non-deal roadshows (where J.P. Morgan acts for the issuer)
  • Conferences, seminars and other events (arranged by J.P. Morgan or places provided at third party events)
  • Credit rating advisory services (where J.P. Morgan acts for the issuer)

This list of examples is non-exhaustive and subject to change.

  • In accordance with your agreements with us, we may perform M&A, ECM or DCM services and/or other advisory services with the involvement of our affiliates including, inter alia, J.P. Morgan AG. When J.P. Morgan AG is involved in the provision of such services, the following applies:
  • In accordance with the regulatory guidance from the German Federal Financial Supervisory Authority (BaFin), any payments for services made by companies affiliated with J.P. Morgan AG to J.P. Morgan AG may qualify as inducements pursuant to the German Securities Trading Act (Wertpapierhandelsgesetz). Therefore, J.P. Morgan AG may have an obligation to disclose such inducements to JPMorgan clients.
  • For any M&A, ECM and DCM and/or other advisory services transactions in which J.P. Morgan AG is involved in the provision of services to JPMorgan clients, and in return receives a payment for such services from the client facing legal entity, the amount of the payment to J.P. Morgan AG could be up to 75% of the revenue earned by the client facing legal entity in connection with such transaction.
  • The aforementioned payments do not lead to an increase of the overall fees to be paid by clients for M&A, ECM and DCM and/or other advisory services
  • JPMorgan may decide to amend the revenue sharing outlined above at any time, and in such case J.P. Morgan AG will update this disclosure page if necessary.

Market Encumbrance

The jurisdictions where it is possible for a security interest, lien or right of set-off to be created by way of operation of law or regulation are:

  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Bangladesh
  • Botswana
  • Bulgaria
  • Canada
  • Chile
  • China
  • Costa Rica
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Greece
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Israel
  • Italy
  • Ivory Coast
  • Jordan
  • Korea, Republic of
  • Latvia
  • Lithuania
  • Luxembourg
  • Malawi
  • Malaysia
  • Mexico
  • Morocco
  • New Zealand
  • Norway
  • Pakistan
  • Panama
  • Peru
  • Philippines
  • Portugal
  • Romania
  • Saudi Arabia
  • Singapore
  • Slovakia
  • Slovenia
  • Spain
  • Sri Lanka
  • South Africa
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Tunisia
  • Turkey
  • Uganda
  • Ukraine
  • United Kingdom
  • United States
  • Vietnam
  • Zambia
  • Zimbabwe

Pre-Trade Transparency

Product Governance

Product and Service Risk Disclosures

Learn More

For further information on MiFID II, please contact your J.P. Morgan relationship manager or email JPMorgan Regulatory Updates.



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