The focus is on the three major elements embedded into the directive. The reader will gain insights into how the key aspects of this regulatory change affect them, these are: Multilateral trading facilities, Internalisation, and Best execution. This book includes its practicalities and a review of the potential impact on the industry. The reader is given a practical understanding of the directive's impact on investment firms and develops a vision of the broader changes the directive will generate amongst industry players. Written by both academics and practitioners, possible ways forward are suggested along with the evolution of the industry over and an insight into the tools and techniques that can be used to support these new regulatory requirements. This reference and guide will be useful to for investment firms representing the entire capital markets value chain, from exchanges and new alternative trading systems, intermediaries, money managers and end investors.
Table of Contents
Chapter 1. MiFID: Context of the European Directive; the Financial Services Action Plan; a desire to better integrate European markets. Chapter 2. Practical impact of MiFID for Investment Firms; pre-trade and post-trade transparency Chapter 3. The development of Multilateral Trading Facilities and ECNs; US example and European reality Chapter 4. Lessons from other markets (Fixed Income, Forex, US ECNs ...) Chapter 5. The development of a new industry: systematic internalization; benefits and constraints Chapter 6. Expected impact on market structure; will transparency guarantee liquidity pools quality and equal treatment to all customers? Chapter 7. Practical impact of MiFID for Investment Firms; best execution Chapter 8. Best Execution; understanding the concept and the European Commission objectives Chapter 9. Transaction Costs Analysis; a state of the industry and research Chapter 10. A new framework for advanced TCA Chapter 11. Level 1 Directive Chapter 12. Level II Directive & Regulation
Jean-Rene started his career as an Analyst Programmer for SIP after graduating from the Ecole Superieure en Sciences Informatiques with a Masters in IT Engineering. Now the founder and CEO of Edhec-Risk Advisory, the consultancy arm of Edhec's Risk and Asset Management Research Centre, he is operating the consultancy arm in addition to his responsibilities within the Edhec Risk and Asset Management Research Centre. Prior to this, Jean-Rene has worked for management consultancy house Capco in London, Paris and Brussels having previously moved from Barclays Capital in London. There he was Project Manager and Lead Business Analyst for several major implementations, including a global transaction hub. Catherine D'Hondt is an associate professor at EDHEC Business School in Lille with her primary research area in market microstructure and a special focus on traders' behaviour and order submission strategies. Having had the opportunity to present most of her empirical works at several high quality international conferences, she currently teaches in the area of financial markets and assets.