Markets in Financial Instruments Directive - The Way Forward in European Securities Market Integration?

25 Pages Posted: 22 Feb 2007

See all articles by Michael Chlistalla

Michael Chlistalla

Goethe University Frankfurt Faculty of Economics and Business Administration

Uwe Schweickert

Deutsche Börse AG

Roland Wittner

affiliation not provided to SSRN

Date Written: December 31, 2006

Abstract

European financial market integration and investor protection are the main objectives of the Markets in Financial Instruments Directive. The public discussion on the effectiveness of MiFID is still controversial before its entry into force in November 2007.

We contribute to this discussion by comparing MiFID against selected aspects of regulatory and financial market integration theory and provide empirical evidence on MiFID driving changes in securities market structure. Four new initiatives in trade reporting and transaction business are discussed with their likely impacts.

We conclude that MiFID is generally in line with theoretical requirements and therefore suitable to achieve its objectives. On the empirical side, new initiatives will increase competition. The market for trade reporting services will change significantly whereas new initiatives in transaction services are not able to differentiate themselves successfully in existent competition.

Keywords: MiFID, financial market integration, financial market regulation

JEL Classification: G18, G28, K22

Suggested Citation

Chlistalla, Michael and Schweickert, Uwe and Wittner, Roland, Markets in Financial Instruments Directive - The Way Forward in European Securities Market Integration? (December 31, 2006). Available at SSRN: https://ssrn.com/abstract=964492 or http://dx.doi.org/10.2139/ssrn.964492

Michael Chlistalla (Contact Author)

Goethe University Frankfurt Faculty of Economics and Business Administration ( email )

Grueneburgplatz 1
Frankfurt am Main, 60323
Germany

HOME PAGE: http://www.efinancelab.de/no_cache/team/?user_wiwipubs_pi2[showUid]=686

Uwe Schweickert

Deutsche Börse AG ( email )

Neue Börsenstr. 1
60485 Frankfurt/Main, 60485
Germany

Roland Wittner

affiliation not provided to SSRN ( email )

No Address Available

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