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The Markets in Financial Instruments Directive (Mifid), launched in November 2007, is the European initiative to promote competition and enhance choice for investors across Europe. Mifid looks at so-called "passporting" for financial products so that they can be traded across borders. It considers transparency and best execution.
In November 2012 it was reported that the review of Mifid, Europe’s key legislation governing markets, has grown from a directive designed to encourage competition to a regulation looking to safeguard markets from systemic risk. It was also reported that discussion on it had been delayed.
In February 2013, an influential MEP warned Europe may face a third round of legislation if the region could not soon agree its much-delayed revision of Mifid and its dealing rules for banks, brokers and high-frequency traders.
In January 2014 it was reported that Europe had agreed its biggest overhaul of securities markets since the 2008 financial crisis extending its regulatory reach into off-exchange dealing, commodity speculation and the new technologies that have transformed the speed of modern trading. The revamped legislation updates the original Markets in Financial Instruments Directive (Mifid).