22 October 2017

Asset managers call for consolidated tape as MiFID rule changes hit data quality

25 November 2008  |  9625 views  |  0 Stock market newspaper with coins stacked

The UK Investment Management Association (IMA) says the quality of information relating to best execution in UK equities has deteriorated since the introduction of the Markets in Financial Instruments Directive (MiFID) last year.

In a survey of its membership, the IMA found that certainty and counterparty risk have become the most relevant factors in the provision of best execution following the collapse of Lehmans.

Guy Sears, director, wholesale at IMA says: "Counterparty risk and settlement certainty dominates the selection process of brokers and venues following the settlement debacle arising in London from the Lehman collapse."

However, the competitive forces unleashed by the introduction of MiFID last year has led to a fragmentation of liqudity and subsequent deteriororation in the quality of information available to the buy side as multiple new marketplaces vie for business across Europe.

The IMA is calling for the creation of a central data repository, modelled on the US consolidated tape system, and the introduction of an order routing rule for European equity venues similar to Reg NMS in the US.

Says Sears: "The survey findings show that as far as UK equities are concerned, IMA members clearly think that the information quality has significantly deteriorated. Members would welcome the introduction of a rule for order routing similar to Reg NMS in the US."

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

Plus takes LSE to court over "anti-competitive" trade reporting rule

Plus takes LSE to court over "anti-competitive" trade reporting rule

19 September 2008  |  8767 views  |  0 comments
More upstart exchanges set to enter crowded post-MiFID market

More upstart exchanges set to enter crowded post-MiFID market

21 August 2008  |  10872 views  |  0 comments
Apcims challenges FSA on data security and MiFID

Apcims challenges FSA on data security and MiFID

24 July 2008  |  7476 views  |  0 comments
Smart routing vital to success in post-MiFID market

Smart routing vital to success in post-MiFID market

09 June 2008  |  5478 views  |  0 comments
Domestic exchanges squeezed as post-MiFID fragmentation hits - Reuters

Domestic exchanges squeezed as post-MiFID fragmentation hits - Reuters

25 February 2008  |  8153 views  |  0 comments
MTFs to take 20% of European trading volume  - Aite Group

MTFs to take 20% of European trading volume - Aite Group

14 November 2007  |  5534 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.niceactimize.comvisit www.atos.net

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
14399 views comments | 17 tweets | 28 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
13000 views comments | 22 tweets | 28 linkedin
satelliteGates Foundation backs Ripple collaboratio...
9771 views comments | 13 tweets | 10 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
9632 views comments | 12 tweets | 23 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8776 views comments | 9 tweets | 18 linkedin

Featured job

Competitive base + commission + benefits
Denmark, Finland, Iceland, Norway or Sweden

Find your next job