EU Archives - Fight to FIRE

How PSD2 will make banking more beneficial for you

Last Updated on: July 12, 2020 by Mr. FightToFIRE

Isn’t it frustrating to see how something simple like your various bank statements are still separate per bank. Wouldn’t it be great to automatically import them into your favorite banking app? Well, Europe has you covered. With the new Payment Services Directive (Directive 2015/2366, 2015), usually shortened to PSD2.

President Donald J. Trump Signs The Section 232 Proclamations On Steel And Aluminum Imports. The Start Of A Trade War?

The good, the bad and the ugly of trade wars

Last Updated on: May 14, 2019 by Mr. FightToFIRE

I can already see you thinking “what the hell does a trade war have to do with personal finance?!” It’s because it impacts every one of us. This has become even more obvious for us retail investors with the biggest indices giving away recent gains. The Dow, for example, is down 5% from its recent top.
It gives us ample opportunities to buy but because of the recent drops and “scary” headlines, some might become sheep that follow the herd while it’s actually time to become a wolf and devour some stock.

MIFID II Directive - Markets In Financial Instruments Directive

MiFID II explained: How EU is trying to protect its investors

Last Updated on: August 4, 2020 by Daniel Woerle

In this post, I’ll clarify MiFID (II) or Market in Financial Instruments Directive and Regulation (so not MiFID (II) Directive). I’ll answer the following questions:

What is MiFID II?
Why was MiFID II created?
Who is MiFID II for?
What impact does MiFID II have on (retail) investors?

Acronyms, who doesn’t love ’em? From the United States with agencies such as FBI, CSI, NCIS, FCC, etc. To Europe with ESMA, OPCW, or NATO. In turn, institutions and organizations like to use them too for their rules.
It are these regulations that I’d like to clarify. Since there are quite a few that specifically impact investors/traders, I created this series.

“European Acronyms” is pretty straight-forward. I go over various terms that appear often in the news and media, and that also has an impact on us investors.

What does MiFID II mean in simple terms?

MiFID stands for Market in Financial Instruments Directive. It’s a set of rules that aims to increases transparency across the European Union’s financial market.

The first version of MiFID implemented new measures, such as pre- and post-trade transparency requirements, and created rules of conduct for the EU’s financial firms. The first version of MiFID was primarily focused on Over The Counter (OTC) transactions.

You might think that MiFID was created after the 2008 financial crisis, but it actually came into effect prior to that. The EU did make changes in light of the crisis.

PRIIPs Regulation Printed On The Side Of A Ring Folder

How to Buy US ETF in Europe with PRIIPs ETF Regulation?

Last Updated on: August 10, 2020 by Mr. FightToFIRE

Most retail investors that trade on their own already noticed starting 2018. As a European, it’s not possible to buy US-based Exchange Traded Funds (ETF) anymore.
If you were trying to find out how to get these US-based ETFs in Europe, I hate to burst your bubble, but there is no straight forward for this after a new ETF regulation in Europe (no, options aren’t straightforward). The major culprit? PRIIPs.
PRIIPs stands for Packaged Retail and Insurance-based Investment Products. Phew, that’s a mouthful, isn’t it? No wonder everyone uses the abbreviation.