An article, which is the second in a series of briefing notes on MiFID II, discussing the key aspects of the discussion paper and consultation paper issued by the European Securities and Markets Authority (ESMA) in May 2014 as the first step in its consultation process for implementation of the MiFID II Directive (2014/65/EU) and Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR).