MiFID or the Markets in Financial Instruments Directive is a European Union law in regards to the financial services sector which provides for a synchronization of the regulation of investment services all over the 30 European Economic Area member countries.
MiFID has been in effect from November 1st 2007 and replaced the Investment Services Directive (ISD). The MiFID was modified by introducing new and more extensive requirements that financial services firms which includes forex brokers have to adapt to, specifically in the way they conduct their businesses as well as in their internal organization.
The main goal of the Markets in Financial Instruments Directive (MiFID) is to increase transparency across all EU financial markets and to standardize regulatory disclosures for firms. Stocks are the primary focus of MiFID but the product scope has been expanded under MiFID II.
