23 May 2011
Perceptions of MiFID – A European perspective
In advance of the MiFID revisions expected later this year, the
City of London Corporation today released a report exploring the
perceptions of MiFID amongst European stakeholders.
The research – ‘Understanding the impact of MiFID in the context
of global and national regulatory innovations; European study’ –
produced by London Economics, builds on the City of London’s
in-depth report of 2010 that focussed on the perceptions of
stakeholders in the UK.
In general, the largely positive views of MiFID expressed by the
European stakeholders – brokers, buy-side firms and trading venues
– echoed what UK stakeholders revealed when interviewed in
2010.
However, there was some diversity of views when it came to the
desirability of the pre-trade transparency waiver regime and the
price impacts of pre-trade transparency.
They also highlighted on-going concerns with regards to:
- The importance of consolidated price information to achieving
best-practice execution
- The liquidity impacts of pre-trade transparency
- The problems caused by data quality, cost and current
commercial solutions to obtaining post-trade information
The City of London’s Policy Chairman Stuart Fraser,
commented:
"It is clear from the City of London’s studies that MiFID has
been broadly successful in achieving greater market efficiencies
and has produced clear benefits not only for the UK but for the EU
as a whole.
"Whilst have seen a one-off static gain in terms of a pan-EU
increase in GDP of 0.8%, we have also seen a dynamic gain in form
of a lower price of capital.
"However, there is no doubt that the activities targeted by
MiFID are not evenly spread across Europe and that a huge share of
the market is currently based in London.
"Given the diversity of views demonstrated in this research and
the potential impact any changes might have on the City’s
international competitiveness, it is important that we remain
vigilant.
"MiFID must be considered in its proper global context – there
is no point creating a level playing field in Europe if, in so
doing, we create a barrier to competing in the global
marketplace."
Ends
Notes to editors
- Download a copy of "Understanding the impact of MiFID in the
context of global and national regulatory innovations; European
study" from
www.cityoflondon.gov.uk/researchpublications
- About the City of London
The City of London Corporation supports and promotes the Square
Mile as the world’s leading international financial and business
centre and provides local government and police services for
workers, residents and visitors. It also provides valued services
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Health Authority.
- About Stuart Fraser
Stuart Fraser is Chairman of the Policy and Resources Committee of
the City of London Corporation.
View his biography
Download a photo of Stuart Fraser
- About London Economics
London Economics
is one of Europe's leading specialist economics and policy
consultancies. It is headquartered in London, and has offices in
Brussels, Dublin, Cardiff and Budapest, and associated offices in
Paris and Valletta. London Economics advise a wide range of clients
in both the public and private sectors on economic and financial
analysis, policy development and evaluation, business strategy, and
regulatory and competition policy. Further information on London
Economics is available at www.londecon.co.uk
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