Markets in Financial Instruments Directive (MiFID)
The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union's financial markets and standardizes the regulatory disclosures required for firms operating in the European Union. The directive was implemented on November 1, 2007 and applies to all firms providing services related to financial instruments.The directive covers a wide range of topics including market structure, pre-trade transparency, best execution, order handling rules, post-trade transparency, and client classification. The overall goal of MiFID is to create a level playing field for all market participants and increase competition in the EU's financial markets.So far, MiFID has been successful in achieving its objectives. Transparency has increased significantly across all asset classes and there has been a significant reduction in transaction costs for investors. In addition, MiFID has helped to level the playing field between traditional exchanges and new entrants such as dark pools.
