What system does MiFID aim to enhance across the European Union?

MiFID, or the Markets in Financial Instruments Directive, is primarily designed to enhance transparency in financial markets across the European Union. By establishing a regulatory framework that promotes transparency, MiFID aims to improve the functioning of financial markets, ensuring that investors have access to essential information related to their investments and the overall market conditions.

One of the key elements of MiFID is the requirement for firms to provide more detailed information about financial instruments, which helps investors make informed decisions and improves overall market confidence. This enhances the level of trust in trading environments and aims to level the playing field for investors, thereby fostering greater competition and efficiency in the financial markets.

While trading facilities, bank capital requirements, and operational risk management are relevant topics within the financial industry, they do not specifically capture the primary goal of MiFID, which is focused on enhancing market transparency. This emphasis on transparency is vital for improving investor protection and maintaining the integrity of financial markets in the EU.