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- 10,000 plus white paper downloads demonstrates demand for independent MiFID expertise as organisations come to terms with key issues such as Clearing & Settlement, the CESR liquid list and writing a Best Execution policy
- With just four months to go until legislation comes into effect, MiFID projects now moving quickly from research into execution phase
Equiduct, the company launched last year to help firms leverage the opportunities presented by MiFID, has announced that over 10,000 copies of its free Equiduct-sponsored MiFID white paper series have now been downloaded from www.equiduct.eu. According to Equiduct CEO, Bob Fuller: We had expected our white papers to generate some market interest, but from the volume of downloads and the feedback we have been getting, it looks like we really tapped into a broader need for independent guidance on how MiFID will impact key issues such as Best Execution, Clearing & Settlement, Pre-trade Information and the CESR Liquid List.
I think this level of interest also shows that the market as a whole is at last getting serious about MiFID. When we first launched Equiduct, most MiFID discussions were all being held at a theoretical and technical level, but now with just four months left until MiFID becomes law everyone has caught up with the fact that the directive is set to impact all market participants, from buy and sell side firms to vendors and exchanges. We have also noticed how those firms that thought MiFID was just a compliance issue have gone strangely quiet as they start to realise just how significant the impact of MiFID on their business is likely to be, he continued.
The Equiduct series of white papers collectively showed how, despite all the random market noise and mistaken analysis, it was possible not just to go back to the original EU MiFID level 1 and level 2 texts and work out what the legislation will mean for firms, but actually come up with some clear guidelines for action. The six Equiduct-sponsored white papers covered the following key areas:
- Best Execution clearly identifying Best Execution obligations as detailed by the original EU MiFID level 1 and level 2 texts, and providing examples of how Best Execution is expected to work in real-life trading situations
- CESR Liquid List helping to provide the first comprehensive breakdown of the likely make-up of the forthcoming CESR Pan European list of liquid shares, and showed how important the list will be in promoting price discovery
- Market Transparency looking at the impact that MiFID will have on the estimated 50 per cent of trading that is currently carried out off-exchange. This paper also considers the role that algorithmic trading systems might play in a post MiFID market, and how an expected increase in market transparency could create a rise in algorithmic trading at the expense of market making
- Pre-trade information highlighting the close relationship between pre-trade price consolidation and the management of execution capability and suppliers also highlighted the need to find solutions to help manage change in the pre-trade information space
- Clearing and Settlement detailing the need for market participants to be able to select the most appropriate and efficient clearing and settlement locations if they are to provide a competitive end-to-end trading service
- Execution Policy addressing what is needed to build a MiFID Execution Policy, showing how factors other than liquidity are also important including the need for gaining inclusion on venue execution lists
We were delighted that so many market participants took time out to read and consider our Equiduct-sponsored white papers. We believe that gaining access to high quality, independent analysis is a pre-requisite before firms start writing their execution policies and preparing for MiFID however, they need to get going as there really is limited time until the legislation becomes law in November, added Bob Fuller.
