EMPOWERING
THE INVESTOR
COMMUNITY TO
PROVIDE BETTER
RETURNS FOR THEIR
END CLIENTS
Dr. Kay Swinburne, Member of the European Parliament
Vice Chairman of Economic and Monetary Affairs Committee
ECR Coordinator of Economic and Monetary Affairs Committee
T
he deadline for MiFID II
implementation is fast
approaching and given the
heavy compliance burden on
individual firms it is easy to lose sight
of why this fundamental overhaul
of European capital markets was
necessary. Over many years, this new
transparency regime across asset
classes has been developed in order
to try and ensure a fair and more
equitable single capital market for
European investors.
Since the advent of MiFID I bringing
more competition to equities
trading, there have been numerous
technological advances and many
new entrants participating as financial
intermediaries in the European
markets. The new legislation therefore
updates equity trading rules to
ensure that lit venues are once again
conducive to buyside trading activity
Summer 2017
whilst extending the transparency
requirement to other asset classes
for the first time. New reporting
requirements and where possible the
unbundling of services were enhanced
to give the buyside more information
and choice with respect to where
best to trade. This shift away from a
dependence on a small number of
broker dealers will hopefully ensure
that the clients get real best execution
and fair treatment which in turn
should encourage a new generation
of European investors to have the
confidence to invest rather than save
for their sustainable future. desks should be asking is not just
whether or not the solutions you are
looking at for MiFID implementation
will meet the requirements of the
regulation , but whether they will
actually allow your firm to take
advantage of all the new information
that will become available?
It may seem as though a lot of the
MiFID II requirements are simply sunk
compliance costs however those who
think beyond them and fully embrace
the challenges of a data driven
marketplace will over time see the
best results. The question your trading The overarching objective throughout
the legislative process was to empower
the investor community to provide
better returns for their end clients and
to ensure that the European markets
were fully competitive and fair to all
participants.
www.buysideintel.com
Are you in a position to absorb the
data and adjust your strategies
accordingly? Does your technology
for routing orders allow you to move
swiftly between new platforms that
may emerge and attract more, higher
quality liquidity?
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