The Markets in Financial Instruments Directive (MiFID) entered into force on 1 November 2007. The outcome of extensive consultation and many years' work, MiFID represents a significant regulatory overhaul of investment services and securities markets in Europe. Competition in trading various financial instruments is opened up among traditional stock exchanges, multilateral trading facilities (MTFs) and investment firms, and is done so throughout Europe by way of the right to ‘passport’ these services across borders. Investors benefit from a greater number of trading venues as well as a robust and comprehensive framework ensuring high levels of investor protection. Together with the other parts of the EU Financial Services Action Plan (FSAP), MiFID is expected, over time, to lower the cost of capital and to bring major benefits for the European economy. MiFID has also demonstrated that the Lamfalussy process can work well.

Before 1 November 2007, much ink had been spilled on the likely effects of MiFID for Europe's capital markets. Yet noticeably little of this work took a long-term view, combining both theoretical and empirical perspectives. Pessimists were threatening that the costs of complying with MiFID would far outweigh its benefits. Since the date of implementation, these voices have been muted and the consensus has become more positive.

Despite its young life, MiFID has proven to be largely supportive of how markets and technology were already changing the face of investment services in Europe for the better.