Mifid

MiFID ( The Markets in Financial Instruments Directive ) - The EU Directive “On Financial Instrument Markets”. The Directorate for Financial Regulation and Oversight (FSA) participated in the development of the Directive. This directive supersedes the previous Investment Services Directive (ISD) directive and is part of the EU plan to create a single European market for financial instruments and services.

MiFID requirements apply to 27 countries of the European Union and 3 countries of the European Economic Area .

MiFID introduces new regulatory rules aimed, in particular, at increasing the transparency of reporting on operations with shares and derivatives . The main applications of MiFID are:

• Activities of exchanges and other currently unregulated trading institutions;
• Establishment of requirements for pre- and post-trading transparency for transactions with securities;
• Expanding the range of investment services and products requiring authorization;
• Providing the opportunity to carry out international activities through the opening of branches in other EU countries to investment companies that have previously received authorization from national regulators.

The directive, among other things, requires investment firms to make a number of changes to their operating procedures, such as transaction reports and information storage for five years.

The MiFID directive entered into force on November 1, 2007.