The MiFID is a plan aimed at creating a single market for financial services across Europe.
Furthermore, it aims to incorporate the structural changes that have recently taken place in the European securities markets.
It is hoped that MiFID will allow the financial services sector to lower the cost of capital, boost international competitiveness and generate growth.
Charlie McCreevy, the internal market commissioner, said: "Our aim is to create a level playing field for firms and to provide clarity for investors, while at the same time ensuring that the new rules can be incorporated into national legal systems as member states demand.
"I believe that we have accommodated both of these objectives."
The news of the level 2 proposals comes after the level 1 Directive was adopted in April 2004.
Mr McCreevy said that the level 1 measures that were agreed by the member states and European Parliament "bind us to a basic framework" and that the level two proposals would build on this.