MiFID - European broker regulator

Market regulation - a question that never loses its relevance. Day by day more and more people prefer to show their potential in the exchange game and earn their living by currency trading. And that is why transparency of trading conditions, control of honesty of exchange operations by brokers on the part of authorities and directives are simply necessary. European countries regulate the work of brokers MiFID.

European MiFID directive

• Full name: EU Directive on Markets in Financial Instruments
• English title: An EU Directive "On markets in financial instruments"
• Abbreviated title: MiFID
• Subordinate countries27 member states of the European Union and 3 countries of the region's economic zone
• Level of trust of traders: tall
• Official website: ec.europa.eu/finance/securities/isd

The Financial Service Authority (FSA) of Great Britain has issued an EU directive designed to control transactions within the financial markets. MiFID. It replaced the preceding ISDaimed at controlling investment operations.

The emergence of this regulator is the next step of the EU authorities on the way to creating a unified financial market in the region. The requirements that have been put forward in the MiFIDThe law of the Union is binding within all member countries of the Union.

The purpose of the directive is to apply new control rules that aim to achieve greater transparency in the financial statements of companies engaged in investment activities and similar organizations in transactions with shares and contracts derived from them. The areas of application of the directive are as follows:

• increasing the range of investment services offered of a nature that requires authorization;
• The possibility of carrying out activities at the interstate level through the opening of branches after prior documentary authorization within their state;
• Increased transparency in the process of trading in securities assets: both before and after the transaction;
• taking control of exchanges and markets that are not yet regulated today.

Under the terms of the directive, investment firms must slightly modify their operating procedures: transactional reports, archiving of information for a five-year period. MiFID has been in force since 1.11.2007 and is now one of the main ones within the EU.

The traders' confidence in the brokers regulated by MiFID is quite high, as the European quality continues to be among the best in the world. It should be noted that most often the MiFID regulation is replaced by the local national regulator, for example CySEC Cyprus.