The Markets in Financial Instruments Directive (MiFID) is due to take effect on 1 November, 2007 across all 27 European Union (EU) member states. As few as four states, including the UK, will meet the implementation deadline. EU directives are normally implemented within two years of enactment, but the European Parliament agreed two-and -a-half years for MiFID. Notwithstanding the DIY guidance from the Committee of European Securities Regulators, member states will miss the deadline and the European Commission will initiate infringement proceedings in the European Court of Justice.
MiFID is billed as further liberalisation of European securities markets. What began as a measure to challenge national stock exchanges protecting domestic franchises and ‘national champion’ status has become a directive that is an extensive re-write of existing broker-dealer and fund manager business conduct rules for buying and selling securities in the secondary markets.
