CISI Professional Practice Exam 2026 – Complete Prep Guide

The primary role of the Markets in Financial Instruments Directive (MiFID) is to regulate financial markets in the European Union. This directive was established to create a harmonized regulatory framework that ensures transparency, fairness, and efficiency in the trading of financial instruments. By setting out rules for the operation of investment firms, trading venues, and the provision of investment services, MiFID aims to protect investors and enhance market integrity across EU member states.

This regulation covers various aspects, including investor protection measures, the requirement for firms to operate in a manner that is in the best interests of their clients, and the obligation for companies to report trades and maintain transparency in their operations. It also encourages competition by allowing investment firms to operate throughout the EU under a single set of rules, thereby creating a more integrated financial market.

The focus on regulation helps to maintain trust in the financial system and is vital for the stability of the investment services industry. While other options may address aspects of the financial market, they do not capture the comprehensive intent of MiFID to regulate and improve market operations at its core.