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Introduction
Markets in Financial Instruments Directive (MiFID) is going to be implemented on November 1st, 2007. MiFID will be introduced to the European Union and will be a step towards creating a single European Financial Market. MiFID is perceived to be the most creative, innovative and ambitious legislation to be implemented ever. MiFID's impact on the European Union (EU) will be significant as it will change the way businesses operate. When implemented, there are also going to be significant changes to the European regulatory framework. MiFID has introduced a lot of new rules and regulations to the market and will profoundly affect the market. There will be a lot of new opportunities that will arise out of the new system.
MiFID is an important part of the European Union's Financial Services Action Plan (FSAP) as it is one of forty two measures of the FSAP. This new system is going to bring in a more competitive and innovative market as businesses or firms, particularly investment firms, will be permitted to go across boarders of Europe to do business within their home country regulations and this will result in stock exchanges competing with the banking industry to get a share of their businesses.
One of the primary reasons that MiFID will have a huge impact on the European Union is due to the enhancement of the transparency level. MiFID is instilling a number of order and trade publications requirements imposed on organized exchanges, called in the Directive regulated markets, qualifying ATSs, called in the Directive Multilateral Trading Facilities (MTFs) and broker dealers that execut ...