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MiFID Survey Results - Highlights

 

November 2005 Newsletter
Contributing directly from Gissing RealtimeXL Moscow Narodny uses STP solution from Gissing Software and Fingertip Developments MiFID Survey Results, "... and the winner of the iPod is..." Gissing's Sales Director reports on CITY IT 2005 Phat Pipe Market Rates Feed Handler to ship Q1 2006 Five new handlers released for Gissing ConteX MCS

In the last Gissing Software Newsletter, in September 2005, we invited you to take part in a survey to find out what you thought the impact and cost of MiFID was likely to be.

We had 34 responses, which is quite respectable for a survey of this size. You can see the composition of the respondents in the pie chart below.

Those who took part have been given access to a detailed analysis of the results, however some of the highlights of the survey are:

Date for implementation

  • Most respondents (nearly 60%) knew the correct date for the implementation of MiFID, although it looks like it might slip again a further 6 months.
  • Over 25% didn't know when MiFID is supposed to be implemented by, and the remainder (nearly 15%) chose the incorrect date.

Affected instruments

  • Nearly 40% of respondents think that foreign exchange (FX) will be affected by MiFID.
    At the last Contribution User Group meeting in July this year, Chris Pickles (Chair of the MiFID Joint Working Group) stated that FX was not affected. In conversation since that date he has agreed that although FX as a financial instrument is not covered directly by MiFID, any transaction involving an instrument that is affected which then involves some sort of currency conversion will be covered by the "best execution" provisions of MiFID.

Transparency of equity prices

One of the primary aims of MiFID is to improve the transparency of equity prices, particularly for small retail investors.

  • Nearly 70% of respondents believe that MiFID will improve the transparency of equity prices.
  • Only one respondent thought that transparency of equity prices would decrease.

Trading margins

  • Most respondents (over 62%) believe that MiFID will reduce trading margins.

Is there someone responsible?

  • Of the respondents who are sure that their organisation will be affected by MiFID, over half have definitely appointed someone to deal with MiFID in their organisation.
  • 25% of are not sure whether anyone's been appointed.

Is there a budget?

  • Of those organisations definitely affected, only 20% have allocated a budget for achieving MiFID compliance.

 

Survey participants