Last Updated on June 3, 2025 by Arnaud Collignon
Understanding MiFID II and MiFIR: Key FAQs
The Markets in Financial Instruments Directive II (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR) are crucial pieces of legislation that aim to enhance the functioning of financial markets in the European Union. Below, we address some frequently asked questions regarding these regulations.
What is MiFID II?
MiFID II is an EU directive that came into effect on January 3, 2018. It aims to:
- Increase transparency in financial markets
- Enhance investor protection
- Improve the functioning of financial markets
What is MiFIR?
MiFIR complements MiFID II by establishing rules for:
- Market structure
- Transparency requirements
- Access to trading venues
Who is affected by MiFID II and MiFIR?
These regulations impact a wide range of financial market participants, including:
- Investment firms
- Trading venues
- Data reporting services providers
- Investors
What are the main objectives of MiFID II and MiFIR?
The primary objectives include:
- Enhancing market integrity
- Protecting investors
- Promoting competition
How do MiFID II and MiFIR improve investor protection?
These regulations introduce several measures to safeguard investors, such as:
- Stricter rules on product governance
- Enhanced disclosure requirements
- Improved access to investment advice
Where can I find more information?
For further details, you can explore the following resources:
Understanding MiFID II and MiFIR is essential for anyone involved in financial markets. These regulations not only aim to protect investors but also to ensure a more transparent and efficient market environment.
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