{
  "slug": "mifid-ii",
  "name": "Markets in Financial Instruments Directive II",
  "short_name": "MiFID II",
  "aliases": [
    "MiFIR"
  ],
  "jurisdiction": "EU",
  "regulator": "ESMA + national competent authorities",
  "kind": "directive",
  "effective_date": "2018-01-03",
  "summary": "EU framework for investment services, trading venues, and pre/post-trade transparency. Key hedge fund touchpoints: research unbundling, best execution, transaction reporting (MiFIR Article 26), systematic internaliser regime, and trading-obligation rules for shares and derivatives.",
  "scope": "Investment firms, trading venues, and ancillary services across the EU.",
  "key_provisions": [
    {
      "section": "Best execution",
      "summary": "Firms must take all sufficient steps to obtain best results for clients."
    },
    {
      "section": "Research unbundling",
      "summary": "Investment research must be paid for separately from execution commissions (recently softened by Listing Act for issuers under €10B)."
    },
    {
      "section": "Transaction reporting",
      "summary": "T+1 transaction reports to NCAs covering 65+ fields per trade."
    },
    {
      "section": "Systematic internaliser regime",
      "summary": "Firms internalising client flow above thresholds must operate as SIs and provide quotes."
    }
  ],
  "applies_to": [
    "EU investment firms",
    "EU branches of third-country firms",
    "EU trading venues"
  ],
  "related_regulations": [
    "aifmd",
    "emir"
  ],
  "related_terms": [
    "best-execution",
    "research-unbundling",
    "systematic-internaliser",
    "transaction-reporting"
  ],
  "official_text_url": "https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0065",
  "history": "Adopted 2014, effective Jan 2018. MiFID II Review (2024) eased research unbundling and clarified trading transparency."
}