The Future of Investing in Europe's Markets after MiFID (The Wiley Finance Series)

294 Pages·2007·1.41 MB·English

by  Chris Skinner

The Future of Investing
In Europe’s Markets after MiFID
Edited by
Chris Skinner

Further praise for The Future of Investing
“Thenewregulatoryframeworkisintendedtofacilitatesignificantchangein
the entire financial ecosystem of Europe.”
—Steve Webb, Partner, Capco
“The implementation of MiFID raises significant issues for banks across
Europe. There are few banks which are not buying or selling securities in
somewayorotherandconsequentlyallbanks,whatevertheirprecisebusiness
model, are likely to be affected by MiFID.”
—Michael McKee, Executive Director, British Bankers Association,
Compliance Reporter Lobbyist of the Year for work on MiFID 2006
“TheMarketsinFinancialInstrumentsDirectivehasanimpactoneveryfirm
thatoperateswithinthefinancialservicesindustry,whetheritisinsideMiFID
orwhethersuperficiallytheDirectivedoesnotdirectlyimpactonthatfirm.”
—Angela Knight, Chief Executive Designate, British Bankers’
Association (BBA)
“MiFIDrepresentsatoughEUregulatoryrequirementwhichmanybanksand
financialservicesfirmshavetodealwith.Giventhecomplexityoftheregulation
andthetimeframeforimplementationbanksmustallocatesubstantialnumbers
ofskilledstaffandsignificantmoniesaroundadoptionoftherules.
This book provides an overall picture of both regulatory needs as well
as drafting a picture of how the world of capital markets and investing
mightlooklikeintheforeseeablefuture.Ahandsomeguideforimplementers
and strategists inside financial services firms who want to understand the
significance of that regulation in the emerging competitive landscape, where
differentiation and a fine-tuned business model are key for survival.”
—Michael Heinz, Banking Industry Expert, IBM
“Implementation of MiFID remains the major challenge for regulators and
fims. In concert with the trade associations we have sought to raise industry
awareness and to encourage firms to make early progress with their imple-
mentation plans. Through work in the Committee of European Securities
Regulators, regulators across Europe, including the FSA, are well advanced
in developing convergent application of key MiFID requirements. Against
that background, I welcome the publication of this volume. It provides
useful pointers to issues that firms should be considering in finalising their
implementation plans in November 2007 and, on a broader canvas over a
larger timescale, the contributions should be helpful input to the contin-
uing debate about the longer-term opportunities and challenges that MiFID
may bring.”
—Michael Folger, Director, Wholesale and Prudential Policy,
Financial Services Authority

The Future of Investing
For other titles in the Wiley Finance series
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The Future of Investing
In Europe’s Markets after MiFID
Edited by
Chris Skinner
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LibraryofCongressCataloginginPublicationData
Thefutureofinvesting:inEurope’smarketsafterMiFID/editedbyChrisSkinner.
p. cm.—(Wileyfinanceseries)
Includesbibliographicalreferencesandindex.
ISBN978-0-470-51038-4(cloth:alk.paper)
1. Securities—EuropeanUnioncountries. 2. Investments—Lawandlegislation—European
Unioncountries. 3. Banksandbanking—Securitiesprocessing—EuropeanUnioncountries.
I. Skinner,Chris.
KJE2245.F882007
346.24(cid:2)092—dc22 2007013727
BritishLibraryCataloguinginPublicationData
AcataloguerecordforthisbookisavailablefromtheBritishLibrary
ISBN978-0-470-51038-4(HB)
Typesetin11/13ptTimesbyIntegraSoftwareServicesPvt.Ltd,Pondicherry,India
PrintedandboundinGreatBritainbyTJInternationalLtd,Padstow,Cornwall,UK
Thisbookisprintedonacid-freepaperresponsiblymanufacturedfromsustainableforestry
inwhichatleasttwotreesareplantedforeachoneusedforpaperproduction.
Contents
About Chris Skinner xv
About the Contributors xvii
Acknowledgements xxv
Introduction xxvii
PART 1 MiFID’S VISION, RULES AND
REQUIREMENTS: THE PRINCIPLES 1
1 The Benefits, Opportunities and Challenges of MiFID 3
Laurence White
1.1 Anticipated benefits of MiFID 4
1.1.1 Increased competition 5
1.1.2 Enhanced investor protection 6
1.1.3 Increased transparency 7
1.1.4 More effective regulatory co-operation 8
1.1.5 Deregulation and the principles-based approach 8
1.2 Opportunities and challenges 9
1.3 Conclusion 10
2 An Overview of MiFID 13
Dr John Ryan
2.1 The Lamfalussy process 14
2.2 Lamfalussy Level 1, legislation and directives 14
2.3 Lamfalussy Level 2, technical implementation and advice 15