The Markets in Financial Instruments Directive (MiFID) was introduced in 2007 for Banks, Investment firms and Financial Service Providers. Aim was to intensify competition between trading venues and financial services. MIFID I resulted in lower transaction costs, better execution, etc.
The main MIFID I objectives are:
- Harmonizing European Exchange trading and Investor markets
- Improve investor protection and integrity
- Improve transparency and efficiency financial markets
Under MIFID I securities and derivatives trades have to be reported to the National Competent Authority (NCA). Transaction reports are used to monitor for market abuse and support the wider regulatory remit of ensuring transparent and fair markets.