White Paper No. 22, 2010

MiFID - Spirit and Reality of a European Financial Markets Directive

The study analyzes how the regulatory framework provided by the Markets in Financial Instruments Directive (MiFID), which became effective in the European Union in November 2007, has changed the European securities industry. The directive seeks to provide for market efficiency and market integrity and to foster competition among execution venues. After the description of the overall objectives of the directive the study presents the MiFID venue classification approach and assesses the intended set-up against the reality of European equity markets as of early 2010. Proposals for possible future regulatory adaptations and enhancements are made.