On 20 October 2011, the European Commission adopted a legislative proposal for the revision of the Markets in Financial Instruments Directive (MiFID). After more than two years of vigorous debate, the revised Directive on Markets in Financial Instruments and a new regulation (commonly referred to as MiFID II and MiFIR), were adopted the European Commission and came into effect in January 2018.

MiFID II and MiFIR are both pieces of legislation originating from the European Commission and; together, seek to provide a European-wide legislative framework for regulating the operation of financial markets in the EU. MiFID II/MiFIR represents a major overhaul of the existing law, building on and extending the scope of the MiFID I. The legislation has several core objectives, including: (a) increased investor protection; (b) alignment of regulation across the EU in certain areas; (c) increased competition across the financial markets; and (d) introduction of reinforced supervisory powers. In seeking to achieve these objectives, MiFID II contains a broad range of complex provisions.