Customer Reviews

MiFID: Convergence towards a unified European capital markets industry

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This book looks at MiFID (Markets in Financial Instruments Directive), a regulatory directive issued by the EU (European Union) in April 2004. Originating from the Internal Markets and Services Directorate-General headed by Charlie McCreevy, this legislation is the latest in a series of initiatives to reform the financial markets within the EU.
This timely publication arrives with exactly a year before the November 2007 deadline for implementation of the directive, and on the twentieth anniversary of Big Bang in the City of London.
The authors provide a good introduction to the creation of European Union regulation and the drive to better integrate European capital markets. This allows the reader to place MiFID in context and provides insight into the political drivers behind the directive.
An analysis of the characteristics of market structures allows a comparison between Europe and the US before addressing the impact of technology. The execution of financial instrument trades is then examined, followed by an assessment of the impact of MiFID on market structures.
The Best Execution obligation, possibly the most contentious element of MiFID, is then reviewed followed by the topic of Transaction Cost Analysis, at both a fundamental and advanced level.

The book is clearly and concisely written, and the tables and diagrams give additional insight into an area that is both complex and complicated.

An excellent introduction to MiFID for those not familiar with the Directive, and even experienced readers will find much of value in this book.