MiFID (Markets in Financial Instruments Directive)

24/10/2007

MiFID (Markets in Financial Instruments Directive) is Europe trying to update the regulations around investment banks. We already have the Investment Service Directive (ISD) which didn't work too well, thus MiFID is sometimes known as ISD2.

The directive will allow companies to provide services across borders and establish branches in other European states. It also does away with the idea that all share trading had to be done through exchanges. Many banks deal 'off-book' which means they shift shares they are already holding between the customers that want to buy and sell, which is easier than going through the exchanges.

All enterprises covered by ISD will be affected - which broadly covers investment banks, market data companies, trading platforms and exchanges.

Have you been effected by MiFID, what do you think, have you any specific worries? If so, please contact us here.