How Europe's Trading Reform is Taking Shape
International Financial Law Review, pp. 28-30, June 2005
Posted: 16 Jun 2008
On 3 May 2005, the Committee of European Securities Regulators (CESR) has presented the second part of its final advice on implementing measures of the EC Directive for Markets in Financial Instruments (MiFID). Against the background of the abstract framework of the Directive, the advice defines the detailed requirements investment firms and trading system operators in the EU have to comply with. By specifying the requirements as to best execution, post-trade and, in particular, pre-trade transparency in detail, the advice substantiates the future regulatory framework of securities trading and, thus, is important for competition between onexchange and off-exchange order execution. To many of the mechanisms now introduced by the MiFID, there are currently no comparable regulations on the national level in the EU Member States. Considering the far-reaching impact the Directive will have and the fact that the date of its implementation in the Member States - May 2006 (current status) or 2007 (in discussion) - is getting closer, markets and market players have to take considerable measures to prepare for the upcoming changes.
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