The Markets in Financial Instruments Directive (MiFID), which came into force in November 2007, is an important pillar of European regulation of financial markets.

The directive has increased competition and integration of European financial markets and improved the protection of investors, the EC said in a statement.

"But the world has changed. And we all know the current framework needs improvement", European Internal Market and Services Commissioner Michel Barnier said.

"My objective is to ensure that the revision of the MiFID will lead to a stronger regulatory framework, adapted to the new trends and players in financial markets," he said.

After gathering input from all stakeholders, the EC will put forward legislative proposals in the spring of 2011.