Markets in Financial Instruments Directive (MiFID)
Definition:
In November 2007, the EU published the Markets in Financial Instruments Directive (MiFID) to bring fairness and integration to over-the-counter markets, including those in fixed-income assets and currencies, as well as exchanges and alternative trading venues. In 2018, MiFID II was adopted as a revision to MiFID and because all investment firms incorporated in the EU, and those operating overseas offices within the bloc, must comply with MiFID II, the directive has extraterritorial application. The European Commission implemented a bloc-wide Markets in Financial Instruments Regulation (MiFIR), with which all member states must comply. The European Securities and Markets Authority (ESMA) offers local regulators guidelines on the implementation of the MiFID II.