A Shared Vision of the Future
The Markets in Financial Instruments Directive (MiFID) will affect all market participants, from buy and sell side firms to vendors and exchanges. The entire industry needs to understand MiFID’s implications.
MiFID Service & Technical Descrption
- leading solutions for a pan-European market
Working in partnership with the market since 2005 and following the completion of an extensive consultation in Q1 2007, the Exchange has published the MiFID Service and Technical Description (PDF 1.31Mb) confirming the product solutions we will make available prior to MiFID implementation on 1 November 2007.
The Exchange would like to thank all those firms that participated in the consultation. This has helped to ensure that the Exchange's markets evolve in line with MiFID and positions London for further growth as the world's capital market.
The Exchange's product solutions are summarised below:
Pre trade transparency:
- Market making in all Liquid securities as an on Exchange alternative to systematic internalisation
- All Liquid securities will be in distinct sectors for ease of identification
- The mandatory quote period for European Liquid securities will be aligned with the Home Market (as well as an optional standardised period across all sectors)
- Limit order display in UK Main Market and leading Dutch securities including more trading on SETSqx the new periodic auction model for less liquid UK securities
Post trade transparency:
- Pan-European trade reporting for off book executions on our market (on Exchange) or OTC (unregulated)
- OTC reporting will be available to member firms and non-member firms
- Open on all European business days
Market data
- Existing market data feeds will continue to provide off book reports as today enabling you to receive all current data and new European data at no extra cost
- New stand alone service for all off book trade reports (on or off Exchange)
Best execution:
- Powerful world-beating system performance delivered by TradElect, the Exchange's new trading system allowing you to trade on one of the fastest, most reliable and technologically advanced equity markets in the world
- Cost effective execution venue (e.g. low execution fee and optionally no clearing or settlement for self executions)
- Tools to demonstrate execution quality across multiple venues
- Data warehousing for record keeping and data storage
Transaction reporting:
- Transaction reporting for multi-asset classes to the Financial Services Authority (FSA) and other regulators (subject to demand) as an Approved Reporting Mechanism (ARM)