Any ardent follower of financial markets worldwide in recent years would have come across this term MiFID being brought up in conversations at least more than once. Well, lucky me (actually brilliant me) that came up with this interesting new Google News widget on the blog, which actually gave me an opportunity to see this link and click on it.
Here goes a small summary of the article cross-linked in this post. What the EU (the European Union, for the uninitiated) proposes to do with MiFID (which stands for Markets in Financial Instruments Directive) is to practically do away with the monopoly of the various stock exchanges and other capital market bourses in all of Europe. With MiFID, the EU proposes to usher in an era of borderless stock and other financial instrument trading across Europe.
What this means for financial entities in Europe is newer regulations, especially in relation to publishing comprehensive details of prices, volumes and timing of all the trades performed by them on any listed shares. This effectively means that they will pretty much have to share all of their trading strategies with the rest of the world. Whether this will bring down their competitiveness in the marketplace is something yet to be seen.
In the meantime, let’s all usher in a new era of trading in European markets. Bienvenue MiFID , as they would say in France.