# Introduction

The Markets in Financial Instruments Regulation (MiFIR) is a European Union directive on the regulation of trading systems on the financial market. The regulation, which came into force in 2018, aims to increase transparency in trading financial instruments and thus reduce the risk of future financial crises.

Under this regulation, financial institutions are obliged to report all transactions that they carry out on behalf of third parties to the national supervisory authority.

## MiFIR Art. 26

To comply with MiFIR Art. 26 ([DE](https://www.bafin.de/DE/unternehmen-maerkte/mvp-portal/26mifir/26mifir_node.html) / [EN](https://www.bafin.de/EN/unternehmen-maerkte/mvp-portal/26mifir/26mifir_node_en.html)), Upvest collects and stores all order execution data for each day on which our client is active.
The Regulation stipulates that the relevant MiFIR reports for a given trading day must be created no later than the end of the following business day.

To ensure that all orders are reported correctly, the MiFIR reports are only created once the order matching in Upvest has been completed.

In this guide, we describe the steps necessary to comply with this regulation and the various use cases that depend on the respective operating models, including licences that Upvest clients are using.

## How does the MiFIR files exchange works?