The original Markets in Financial Instruments Directive (MiFID) led to a major shift in the cash equity markets. It sought to remove barriers to cross-border financial services within Europe for a safer, more transparent and evenly balanced marketplace as a whole.
Extending these transparency requirements, MiFID II will have an even more pronounced impact across the landscape. It will affect everyone engaged in the dealing and processing of financial instruments, from business and operating models, systems and data, to data, people and processes. It will furthermore, strengthen investor protection and improve the functionality of financial markets in terms of efficiency, resilience and transparency.
The high level goals of MiFID II are:
Increased transparency of markets
A shift in trading towards more structured marketplaces
Lower cost market data
Improved best execution
Orderly trading behaviour within markets
More explicit costs of trading and investing