OMX has introduced a MiFID Service Menu designed to meet new opportunities and needs for market participants and investors on the Nordic Exchange as well as new or existing marketplaces.
The Markets in Financial Instruments Directive (MiFID) will take effect in the EU region on 1 November 2007. The directive aims to promote further harmonisation of the EU capital markets. OMX has developed the Service Menu to meet MiFID opportunities and needs from banks, brokers, investors, regulators, exchanges and alternative marketplaces. The menu addresses three central needs:
- Assuring best execution for Nordic and Baltic securities
- Meeting MiFID transparency requirements
- Creating a MiFID compliant marketplace
"As a market operator and technology partner, OMX leverages its expertise in the exchange industry to deliver value through continuous innovation and improved efficiency of financial markets. We understand first-hand how marketplaces work, in different regulatory environments, and the complex technology infrastructures that power them. Our track record includes integration of the Nordic Exchange as well as over 60 technology customers in more than 50 countries," says Jukka Ruuska, President of Nordic Marketplaces at OMX.
The Service Menu provides a framework for all services targeted at helping customers meet MiFID requirements and gain new competitive advantage. OMX has already taken a number of initiatives that are part of the MiFID Service Menu.
The recently introduced Proximity Service helps assure best execution for Nordic and Baltic securities by providing low latency network access to trading and market data. Earlier this year OMX initiated an in depth consultation among members on microstructure improvements. New tools and reports will also be introduced to facilitate best execution policy audits.
Within the transparency requirements area, OMX has already reduced the fees related to cash equity trades and will be extending the trade reporting services to all EU securities. OMX will also introduce new services for systematic internalizers as well as new transaction reporting services.
To help customers create MiFID compliant marketplaces, OMX provides business operations services, covering all aspects from administration and market operations to market surveillance, and outsourced back-office operations for market participants.