European Union negotiators struck a deal on the outlines of new regulation covering a wide-ranging array of financial instruments and marketplaces.

The regulation agreed after more than three years of negotiations includes elements curbing trading of some commodity derivatives that has been blamed for driving up food prices.

It also seeks to ban unregulated trading and establishes tighter rules for high-frequency trading, which some blame for increasing volatility to a point that threatens the stability of financial markets.

Lawmakers at the European Parliament and representatives of the EU's 28 governments struck the deal on the outlines of the so-called Markets in Financial Instruments Directive, or MiFiD, in a late-night session in Strasbourg Tuesday. The legislation is part of the overhaul of financial regulation following the financial crisis.