• silicon.com
• Management
• CIO Insights

By silicon.com, 1 November 2007 17:02

The arrival of MiFID should be an opportunity for the UK banking industry to take advantage of the head start it has over much of Europe.

The European investment banking regulation that came into force today is aimed at making financial trading across borders easier and fairer by, among other things, promoting best execution for trades and improved record keeping.

Analysts have said banks touting their MiFID credentials could take business away from those that have been less proactive and the same could potentially happen with countries competing for business.

Read more about how MiFID is shaking up the financial industry

♦ Cheat Sheet: MiFID
♦ UK banks ready for MiFID, says FSA
♦ MiFID: Banks not ready as deadline looms
♦ MiFID: The unanswered questions
♦ FSA upgrades tech to improve MiFID monitoring
♦ MiFID compliance - regulators in the spotlight
♦ Barclays Capital prepares as MiFID looms
♦ Banks gang up for MiFID reporting

The Financial Services Authority (FSA) transposed MiFID into UK law at the end of January - much earlier than many other countries - and so firms have had much longer to adapt to new processes and bring in the technology needed.

With MiFID's aim of promoting best execution for financial trades, customers will find the UK's early preparation extremely attractive as it will mean they can benefit from the fairest and cheapest trades.

The FSA has said the UK is well prepared for today's deadline - thanks to a lot of hard work by the IT departments in many City institutions.

It has been argued that the effect of MiFID could be watered down by the fact not all countries have transposed it into national law - and some countries could well benefit more than others, at least initially.

London is already one of the leading trading venues in Europe and, despite MiFID's aim to level the playing field, it could make the City even more powerful as its early readiness attracts additional trade.

There will, of course, be a period in which firms adjust to the new reality but it seems the UK is sitting pretty and countries that have been slower on the uptake may regret it.