Regulation: The Nine Billion Dollar Manacle - The Markets In Financial Instruments Directive (MiFID), Also Known As The Investment Services Directive #2, Promises True Trading Transparency But At A Cost Akin To That Of Dealing With Y2K Problems.

Banker, The, October, 2005

What is it?

MiFID targets dealings in the investment markets, and is intended to introduce full transparency in all trading in equities. The commission is considering and extension of the regime to bonds and derivatives.

Who dreamed it up?

The European Commission engaged the Committee of European Securities Regulators (CESR) to draft the legislation. The first draft was issued in April 2004 and was entitled Directive 2004/39/EC.

When will it be implemented?

April 2007.

Who wins, who loses?

The intent of MiFID is that the buy-side are winners. MiFID legislates that investors are made aware of all of the pricing for financial instruments from all of the providers of that instrument, and that they receive...

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