The Mifid: Competition in a New European Equity Market Regulatory Structure

Posted: 6 Dec 2005

See all articles by Ryan J. Davies

Ryan J. Davies

Babson College - Finance Division

Alfonso Dufour

ICMA Centre, Henley Business School, University of Reading

Brian Scott-Quinn

University of Reading - ICMA Centre

Date Written: July 2005

Abstract

In 2004, the European Council and Parliament adopted a new directive on markets in financial instruments (the MiFID). The implementation of the directive in EU member states is still ongoing. We provide a framework for understanding some of the main features of this new regulatory structure. We summarize the economics of fragmentation and internalisation - issues that have been at the forefront of discussion throughout the MiFID consultation, approval and implementation process. We also provide lessons from the US regulatory experience, with a special focus on US trade reporting rules. We highlight relevant features of the largest European equity markets, describe the main features of the MiFID and provide recommendations on its implementation.

Keywords: securities regulation, fragmentation, internalization, Europe

JEL Classification: G15, G18, G2, K2

Suggested Citation

Davies, Ryan J. and Dufour, Alfonso and Scott-Quinn, Brian, The Mifid: Competition in a New European Equity Market Regulatory Structure (July 2005). Available at SSRN: https://ssrn.com/abstract=867224

Ryan J. Davies (Contact Author)

Babson College - Finance Division ( email )

220 Tomasso Hall
Babson Park, MA 02457-0310
United States
781-239-5345 (Phone)
781-239-5004 (Fax)

HOME PAGE: http://www.ryanjdavies.net

Alfonso Dufour

ICMA Centre, Henley Business School, University of Reading ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom

Brian Scott-Quinn

University of Reading - ICMA Centre ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom

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