What changes does MIFID II impose on market transparency?

The correct choice highlights that MiFID II, which stands for the Markets in Financial Instruments Directive II, expands requirements for transaction reporting. One of the primary objectives of MiFID II is to enhance market transparency and ensure that transactions are more closely monitored. This includes the implementation of more rigorous reporting standards that require firms to report detailed information about trades, including the prices, volumes, and timestamps.

By expanding these reporting obligations, MiFID II aims to facilitate better oversight of market activities, improve price transparency for investors, and enable regulators to monitor market conduct more effectively. This increased transparency can help in preventing market abuse and ensuring fair competition among market participants.

The other options do not accurately reflect the objectives or effects of MiFID II. Reducing regulatory oversight contradicts the aim of stronger regulations; eliminating conflicts of interest regulations would undermine investor protection, and stating that it only applies to overseas markets disregards its impact on EU markets and entities operating within and outside the EU.