Markets in Financial Instruments Directive - MiFID
Definition of 'Markets in Financial Instruments Directive - MiFID'
A directive that aims to integrate the European Union's financial markets and to increase the amount of cross border investment orders. The MiFID plans to implement new measures, such as pre- and post-trade transparency requirements and capital requirements that firms must hold. The directive officially took effect on November 1st, 2007.
Investopedia explains 'Markets in Financial Instruments Directive - MiFID'
Measures pertaining to MiFID will apply to investment banks, portfolio managers, brokers, corporate finance firms and some derivatives and commodities related firms.
Ultimately, MiFID represents the next step into fully integrating the EU's financial markets. Some predictions show that if MiFID is successfully implemented, millions of additional trades will be generated on an annual basis.