Markets in Financial Instruments Directive (MiFID)

    The Markets in Financial Instruments Directive (MiFID), is a harmonisation guideline for the standardised regulation of the financial and investments sector within the European Union (EU).

    The 27 member states of the EU are free to set up their own financial regulatory bodies – such as UK‘s Financial Services Authority (FSA) – and their own rules and regulations, but such activities must fall within MiFID’s framework.

    The legislation also includes harmonised regulation for the three European Economic Area countries that are not part of the EU itself: Iceland, Norway and Liechtenstein.

    The MiFID guidelines set out to protect consumers and increase competition within the industry. They distinguish between core services such as investment services and activities and ancillary services.

    MiFID covers almost all tradable financial products, including commodity and other derivatives such as freight, climate and carbon derivatives. However, it does not regulate certain foreign exchange trades.

    Also see:

    European Commission’s investment services and regulated markets: