MiFID tweaked for the UK

The European MiFID regulations have been reworked to fit with UK requirements.

The transposition of MiFID to the UK involved the removal of existing UK provisions made redundant by MiFID and the retaining or adding of requirements to fulfil UK needs, according to a policy statement published today by the Financial Services Authority (FSA).

European companies now have nine months to complete their implementation plans to meet the 1 November introduction of MiFID.

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MiFID is aimed at updating European investment banking regulations to allow organisations to trade across borders and reduce the need to trade shares through exchanges.

Businesses will need to prove 'best execution' for trades - which is likely to take into account issues such as price, venue, cost and speed - and to retain records of trades for five years, a change that is likely to drive the uptake of automated algorithmic trading.

FSA MD Hector Sants said in a statement: "We believe we have stuck to our commitment to minimise the burden on firms by adopting a proportionate approach to implementation."

The proposals in the policy document are now with the European Commission for approval.