MiFID II, or the Markets in Financial Instruments Directive II, is a European Union regulation that aims to improve the functioning of financial markets and enhance investor protection. Implemented in January 2018, it builds on the original MiFID framework, introducing stricter rules for transparency, reporting, and the conduct of financial firms. The directive requires investment firms to provide clearer information about costs and risks, ensuring that clients can make informed decisions. Additionally, MiFID II enhances oversight of trading venues and aims to reduce market manipulation, ultimately promoting fairer and more efficient financial markets across the EU.