MiFID is the Markets in Financial Instruments Directive (2004/39/EC). It has been applicable across the European Union since November 2007. It is a cornerstone of the EU's regulation of financial markets seeking to improve their competitiveness by creating a single market for investment services and activities and to ensure a high degree of harmonised protection for investors in financial instruments.

MiFID sets out:

• conduct of business and organisational requirements for investment firms;
• authorisation requirements for regulated markets;
• regulatory reporting to avoid market abuse;
• trade transparency obligation for shares; and
• rules on the admission of financial instruments to trading.

On 20 October 2011, the European Commission adopted a legislative proposal for the revision of MiFID which took the form of a revised Directive and a new Regulation. After more than two years of debate, the Directive on Markets in Financial Instruments repealing Directive 2004/39/EC and the Regulation on Markets in Financial Instruments, commonly referred to as MiFID II and MiFIR, were adopted by the European Parliament and the Council of the European Union. They were published in the EU Official Journal on 12 June 2014.

ESMA, having completed the technical standards and technical advices, has contributed to the smooth implementation of MiFID II/MIFIR by issuing Q&As, and Guidelines, which will be updated when necessary.

On an ongoing basis, ESMA have a number of duties including:

• the on-going publication of information on its website (e.g. reference data or volumes of trading executed under certain waivers for the purpose of the double volume cap mechanism),
• the production of reports in cooperation with the European Commission (e.g. on the functioning of OTF or SME growth markets),
• the registers on trading venues, data reporting service providers investment firms and systematic internalisers, 
• the monitoring and publication of opinions of how certain provisions are implemented (e.g. implementation of position limits or use of pre-trade transparency waivers), and
• specific product intervention powers where ESMA and national supervisors are able to temporarily prohibit or restrict the marketing, distribution or sale of a financial instrument or a type of financial activity or practice where certain conditions are met.