MiFID swallowing IT budgets

MiFID swallowing IT budgets

Around a third of financial firms will be spending more than 10% of their IT budgets on implementing the European Union's Markets in Financial Instruments Directive (MiFID), according to California-based market data technology vendor VhaYu Technologies.

VhaYu says a poll of 129 respondents held during its MiFID webinar found that 30% expect to allocate between 10% and 20% of their IT budgets to MiFID, while just over a fifth (21%) will allocate more than 20%.

Around a fifth (21%) will spend less than 10% of their IT budgets on implementing the new rules, while 15% of respondents said that 10% of budgets will go to MiFID.

Best execution was found to be the main technical challenge when implementing the regulation and was cited by 32% of respondents. This was followed by publishing pre & post trade data (17%), storage of quote and trade data (28%) and compliance monitoring (23%).

Commenting on the research, Jeff Hudson, CEO of Vhayu, says: "It is clear from these poll results that preparation for MiFID's impact on IT infrastructure is being given serious budget and resource allocation.

MiFID is expected to come into force in November 2007.

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