Markets in Financial Instruments Directive
a.k.a. MiFID, MiFID II
The European Union's rulebook for investment firms and trading venues, beefed up as MiFID II in 2018.
MiFID (the Markets in Financial Instruments Directive) is the EU law that sets the rules for brokers, banks and exchanges selling investments to people in Europe. The first version arrived in 2007. Its much heavier sequel, MiFID II, took effect in January 2018 after the 2008 crisis exposed how murky some markets were.
For a trader, MiFID shows up as the questionnaires your broker makes you fill in, cost disclosures, record-keeping, and "best execution" duties that require firms to get clients a fair fill. Its spirit is transparency: more light on prices, fees and conflicts of interest.
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