The MiFID Revolution
The Market in Financial Instruments Directive (MiFID) is nothing short of a revolution. Introduced on 1 November 2007, it will have a profound, long-term impact on Europe's securities markets. It will see banks operating as exchanges for certain activities, offering alternative execution services that more closely resemble the structure of over-the-counter markets, and will lead to the decentralisation of order execution in an array of venues previously governed by concentration rules. Crucially, MiFID will also have a profound impact on the organisation and business strategies of investment firms, exchanges, asset managers and other financial markets intermediaries.
Until now, analysis has focused on the directive's short term implementation issues. This book focuses on the long term strategic implications associated with MiFID, and will be essential reading for anybody who recognises that their firm will need to make constant dynamic readjustments in order to remain competitive in this challenging new environment.
'From its origins and various key provisions to its anticipated impacts and potential international implications, this work provides a comprehensive look at MiFID as well as the market reality it serves. It analyses its subject material with clarity, criticism and rigour.' - David Wright, Deputy Director General, DG MARKT, European Commission
'MiFID is one of the most important regulatory measures affecting firms operating in the capital markets in the EEA, and MiFID studies by experts such as CEPS-ECMI in their new book are therefore most welcome.' - Rene Karsenti, Executive President, ICMA
'This book comes at the right time for the European financial services industry in its move towards greater integration. It clearly emphasises the challenges and opportunities raised by MiFID to the asset management industry [and] demonstrates the need for strong cohesion in the regulation of distribution of financial services across Europe for the benefit of the industry and ultimately investors.' - Jean-Baptiste de Franssu, CEO Invesco Continental Europe
'Clearly the most comprehensive step to understanding the intended meaning of MiFID and potential repercussions. It should be a must for those operating within MiFID limits and also for those who have access to the European financial markets from overseas.' - Antonio Zoido, President and CEO, BME
1. The MiFID revolution
2. Origins and structure of MiFID
3. Suitability and appropriateness under MiFID: 'faithful watchdogs' or 'terrible twins'?
4. Best execution rules under MiFID
5. Financial market data and MiFID
6. Guarding against conflicts of interest: where do we stand?
7. The MiFID approach to inducements: imperfect tools for a worthy policy objective
8. MiFID's impact on the fund management industry
9. MiFID and bond market transparency
10. The MiFID regulatory and supervisory architecture
11. MiFID and Reg NMS: a test-case for 'substituted compliance'?
Annex I: list of services and activities and financial instruments
Available from Cambrigde University Press and selected bookstores.