The Markets in Financial Instruments Directive (MiFID) is a European Union regulation aimed at harmonizing financial markets across member states. It enhances investor protection and promotes transparency in trading activities by establishing a framework for the provision of investment services and activities. MiFID applies to various financial instruments, including stocks, bonds, and derivatives. It requires firms to adhere to strict conduct rules, ensuring that clients receive fair treatment and that their interests are prioritized. The directive also encourages competition and innovation within the financial services sector, ultimately benefiting consumers and the economy.