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By Tim Ferguson, 26 November 2007 12:20

NEWS

The deadline for MiFID compliance passed without a major hitch in the UK but there's still a lot of work to do say industry experts.

MiFID - the Markets in Financial Instruments Directive - came into effect on 1 November and is Europe's effort to improve the way investment banks do business across the continent.

Read more about how MiFID is shaking up the financial industry

♦ Cheat Sheet: MiFID
♦ 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

On the run up to the deadline there were concerns that many UK banks weren't going to be ready in time - but this view seems to have been wide of the mark.

Peter Redshaw, research director at analyst house Gartner, told silicon.com: "It's been remarkably quite. I don't think there've been any big issues."

But he explained most banks approached 1 November as a minimum ticking-the-box exercise, with real work due to get under way in 2008.

He said: "The first priority is to go live [with MiFID] unscathed."

He added: "I don't think that means that it will be plain sailing from now on though. It'll be a changing market."

With most banks technically competent with MiFID, Redshaw said they now need to capitalise on this by concentrating on providing the best services possible.

When asked how he would sum up the current situation, Redshaw said: "Steady as she goes. I think everyone can be pleased that they've complied. But don't become complacent."

Chris Pickles, MiFID joint working group chairman and industrial relations manager at market infrastructure provider BT Radianz, told silicon.com: "I don't think there's been any big bang. It's not a surprise - it's what we've been expecting."

He added the industry is still experiencing consolidation with several acquisitions taking place as companies adjust to the post-MiFID world.

He suggested companies still have time to sort out the finer details of MiFID compliance, saying: "The general word in the market is you've got until Christmas."

He said details such as best execution will start to form the commercial and performance goals of banking execs in 2008, meaning there will be more emphasis on these areas.

Pickles also suggested MiFID will provide a boost to the City of London. He said: "London will continue to lead in this [financial trading] and its position will probably get stronger."

Speaking to silicon.com a Financial Services Authority (FSA) spokesman suggested the FSA is happy with the way things have gone so far. He said: "We're still confident."

But when asked about any issues that have emerged since 1 November, he said: "I think it's probably too early to tell."

The spokesman confirmed the regulator will start its review into MiFID compliance during the first quarter of 2008.