MiFID II, the Markets in Financial Instruments Directive II, is a regulatory framework created by the European Union to improve transparency and investor protection in financial markets. The main focus of MiFID II is on regulatory reporting and transaction transparency. This means that financial firms must report transaction details to regulators and disclose trade information to the public, ensuring that all market participants have a clearer view of market activities.

This transparency requirement goes beyond simply sharing information with regulators. By making transaction data available, MiFID II aims to reduce unfair practices and create a more open market where prices and trades are visible to all.