What was the effect of MIFID 2 on the scope of MAR?

MiFID II significantly expanded the regulatory framework for financial markets in the European Union, and one of its key effects was the extension of the Market Abuse Regulation (MAR) to cover Organised Trading Facilities (OTFs). OTFs are trading venues that facilitate the trading of non-equity instruments and were introduced under MiFID II to enhance transparency and regulatory oversight in these markets.

By including OTFs under the scope of MAR, the regulation now applies to additional platforms and trading activities that were previously unregulated or less regulated. This extension ensures that the same standards of market integrity and protection against insider trading and market manipulation are upheld across a broader range of trading venues.

The other options do not accurately capture the impact of MiFID II on MAR. For example, MAR was not limited to EU regulated markets alone; it already covers various trading activities across different venues. Similarly, it was not canceled entirely, nor were all trading restrictions dropped. Instead, the key development was the inclusion of additional trading facilities under the existing framework, which aimed to promote fairness and transparency in financial markets.