The Markets in Financial Instruments Directive also known as the MiFID and its duty is to provide regulation for investment services in 31 member states of Europe’s Economic area. These 31 states are the 28 EU member states, as well as, Iceland, Norway and Liechtenstein. The directive’s main aim is providing consumer protection and increasing competition in investment service provision. The MiFID replaced the Investment Services Directive (ISD) as of November 1st 2007.
On 20th October 2011, the European Commission took up the legislative proposal to revise the MiFID. These proposals took the form of a Directive that had been revised and a new regulation which was referred to as the MiFID II. These new proposals were designed to include developments in the trading environment from the time the MiFID was implemented in 2007. This includes advances in technology, as well as, the gaps in investors and regulators transparency.