The European Union’s Markets in Financial Services Directive (MiFID) involves the most far-reaching reform of any major financial market ever undertaken. Or so say consultants Celent. The firm adds that MiFID will also enable investment firms to significantly increase their revenues.
In a new report, “MiFID — An Introduction,” Celent outlines the changes in regulation that MiFID seeks to achieve. The report also analyses the impact and implications of MiFID in terms of the structure of the European financial markets, including an analysis of changes in the areas of market data, order execution policies, liquidity fragmentation and best execution requirements.
“European investment firms remain woefully unprepared for MiFID,” says Octavio Marenzi, co-author of the report. “Many are totally unaware of the contents and direction of the directive, and virtually none have taken any concrete steps to prepare themselves for the new structure of European capital markets that MiFID will give rise to. Rather than simply being a regulatory compliance exercise, MiFID gives rise to myriad new business opportunities for investment firms.”
The major changes in regulation that MiFID seeks to achieve will be discussed at an upcoming roundtable hosted by Celent on November 29, 2005 at the Le Ritz Paris.