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.

BREAKING DOWN '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.

  1. Capital Markets

    Capital markets are markets for buying and selling equity and ...
  2. European Economic and Monetary ...

    The successor to the European Monetary System (EMS), the combination ...
  3. European Union - EU

    A group of European countries that participates in the world ...
  4. Eurozone

    A geographic and economic region that consists of all the European ...
  5. Transparency

    The extent to which investors have ready access to any required ...
  6. Novation

    1.The act of replacing one participating member of a contract ...
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