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The Markets in Financial Instruments Directive is a European Union law, which took effect in 2007 and harmonises regulations governing investment services across the 27 EU states as well as Iceland, Norway and Liechtenstein. It aims to integrate EU financial markets and increase competition and consumer protection in investment services. It affects regulations applying to a wide range of financial services firms including investment banks, portfolio managers and brokers.
See also: http://ec.europa.eu/internal_market/securities/isd/index_en.htm#isd