19 August 2017
visit www.avoka.com

Buy-side unimpressed by MiFID

14 November 2005  |  10649 views  |  0 cash escaping

Over half of buy-side institutions believe that the introduction of the European Union's Markets in Financial Instruments Directive (MiFID) will impose high costs but provide little benefit, according to a survey conducted by electronic trading network Liquidnet Europe.

The new directive - which is expected to come into force on 1 November 2007 - will enable banks to offer financial products across all 25 EU member states. Banks will be able to trade shares internally, off-exchange, but will be required to publish the prices of intended trades to the rest of the market beforehand.

But a survey of Liquidnet Europe's buy-side membership base found that 55% of respondents believe the directive will be expensive to implement and will provide little benefit. A quarter - 27.7% - feel that complying with the regulation would be inexpensive but would not benefit them. Only 16.7% think that complying with MiFID will be inexpensive and show a positive ROI.

Furthermore, when asked if in its current form MiFID would deliver best execution once implemented, the majority of respondents - 66.7% - answered negatively, while just a third (33.3%) answered in the affirmative.

Sightly more institutions (38.9%) view the introduction of the Directive as positive for business, against 33.3% who rate it as detrimental to buy-side prospects.

Over half (55.6%) of respondents said that their use of electronic venues will increase as a result of MiFID, while 44.4% said their use of electronic trading networks will not change.

Almost half of respondents (43.8%) said their firm does not plan to spend any money at all to meet the MiFID requirements.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

City investment firms not ready for MiFID

City investment firms not ready for MiFID

31 October 2005  |  9537 views  |  0 comments
Compliance costs mount as US banks slip behind on MiFID timetable

Compliance costs mount as US banks slip behind on MiFID timetable

21 October 2005  |  10472 views  |  0 comments
European Commission set to extend MiFID deadline again

European Commission set to extend MiFID deadline again

19 October 2005  |  10455 views  |  0 comments
MiFID compliance bill could reach $1 billion - TowerGroup

MiFID compliance bill could reach $1 billion - TowerGroup

04 October 2005  |  10185 views  |  0 comments
European securities exchanges add to MiFID concerns

European securities exchanges add to MiFID concerns

30 August 2005  |  8763 views  |  0 comments
European Banking Federation slams MiFID proposals

European Banking Federation slams MiFID proposals

22 August 2005  |  11234 views  |  0 comments
FSA hits out at MiFID cost burden

FSA hits out at MiFID cost burden

22 July 2005  |  13213 views  |  0 comments
MiFID to spark EUR1 billion IT spend

MiFID to spark EUR1 billion IT spend

20 July 2005  |  10541 views  |  0 comments
MiFID deadlines extended by six months

MiFID deadlines extended by six months

21 June 2005  |  6822 views  |  0 comments
Industry standards bodies band together for MiFID

Industry standards bodies band together for MiFID

04 April 2005  |  14063 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.dorsum.eudownload the paper nowvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
8727 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7696 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
6957 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6361 views 1 | 5 tweets | 3 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
6210 views comments | 11 tweets | 9 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job