TABB Group announced today it is introducing an eight-part series of commentaries based on the public consultation on the review of the Markets in Financial Instruments Directive (MiFID) published December 8, 2010 by the European Commission.
According to TABB, the London- and New York-based strategic advisory and research firm, the review attempts to fix some of the gaps in the initial MiFID document and takes on the challenges of key market issues: market fragmentation; pre- and post-trade transparency; market-data aggregation; actionable indications of interest (IOIs); dark pools; high frequency trading; and, in conjunction with the European Markets Infrastructure Regulation (EMIR), OTC derivatives regulation.
The review, says TABB Group founder and CEO Larry Tabb, is one of the most significant regulatory initiatives undertaken by the European Commission. “The Consultation paper on the review, referred to as MiFID II, contains a vast number of proposals packed into its 83 pages. Like it or hate it, whether you’re an investor, broker, exchange or pensioner, implementation of these proposals will have an impact on the way you invest, trade, broke or match buyers with sellers in the European marketplace.”
The ramifications of these proposals, he adds, are so extensive that they will have an impact across asset classes and on market participants within the European Union as well as the global markets. “We believe that other regulators will look to copy, cherry pick or avoid similar rules. As a result, if you’re an investor, bank, broker or exchange, you will need to realign your offerings to either comply – or avoid – huge changes in how the financial markets will operate across Europe.”
Over a period of weeks, TABB Group analysts will issue their comments on the eight areas they see as carrying the greatest significance for the financial industry. The commentaries will be serialized and published on first on TabbFORUM, the online community focused primarily on current. “hot-button” issues affecting the capital markets, an industry site tracked daily by more than 6,500 buy-side and sell-side market participants, hedge funds, exchanges, regulators, academics, consultants, vendors and over 250 media around the financial markets. Upon their completion of the series, the commentaries will be combined in a single publication and made available to TABB Group’s Research Alliance clients through tabbgroup.com.
The commentaries are being written by Tabb; Miranda Mizen, a TABB principal and head of European research; Adam Sussman, director of research; Kevin McPartland, senior analyst; Will Rhode, research analyst; and Cheyenne Morgan, research analyst.
The commentary topics, contents and authors include:
|
Topic |
Theme |
Author |
|
View
from the Top |
What does this all of
this add up to? |
Larry Tabb |
|
Reading between the
Lines |
What’s not in the
consultation paper, how will it work and where does ESMA come in? |
Miranda Mizen |
|
Trading Off-floor |
Are broker dark pools
dead? What are the implications for the block market? |
Cheyenne Morgan |
|
Liquidity Provision |
How will new quoting
obligations, registration and minimum resting times impact liquidity
providers? |
Larry Tabb |
|
Winners and Losers |
Who wins, who loses
among the market participants and product providers? |
Will Rhode |
|
Surveillance |
What are the new
requirements across the board? |
Miranda Mizen |
|
Dodd-Frank for
Derivatives? |
How
do the European proposals compare with the trading and central clearing
of derivatives? Who is in charge? |
Kevin McPartland |
|
Beyond Equities |
What are the
implications of applying MiFID to the bond markets? |
Adam Sussman |
