Europe’s Financial Services Industry on Track With MiFID But Divided Over Whether It Will Be “Good For Europe”, SunGard-TradeTech Survey Reveals

Frankfurt - 21 September 2006

Results of The First of Four MiFID Surveys Announced at SunGard’s FINANZ-TAG Event in Frankfurt

SunGard, a leading global provider of software and processing solutions for financial services, and TradeTech, a leading global conferences and research firm, announced today at SunGard’s inaugural FINANZ-TAG event in Frankfurt, the results of the first SunGard-TradeTech MiFID survey. The survey of 230 people from twelve European countries confirmed the commonly held belief that MiFID is the biggest change in the European financial services industry for over a decade. But the industry is deeply divided as to whether MiFID will be good for Europe’s economy in the next 5-10 years, with 24% viewing MiFID as bad for the economy, 38% viewing it as good and 38% sitting on the fence.

84% of respondents said their firm was on track with its MiFID preparation, with only 12% reporting that their firm had not understood the Directive or was actively opposing it. However, the survey showed a widespread belief that MiFID will be bad news for exchanges over a ten year time horizon, with nationally focused banks and asset managers also expected to suffer. National regulators scored badly in the survey, with over half of the respondents ranking the help they were receiving from their local regulator as “bad” or “very bad”.

Of the respondents in this first of four online MiFID surveys, 46% described themselves as coming from banks and broker-dealers, 20% from asset managers and the remainder coming from exchanges or consultancies. UK-based professionals were most represented, contributing 40% of the results, followed by France with 13%, Germany and Austria with 10% and Switzerland, Nordics and Benelux each contributing 6-7% of the results.

Amaury de Ternay, head of global trading, BNP Paribas Asset Management, who took part in the survey, stated, “With MiFID we are observing an evolution that is quite rare: total coherence between the technological evolution of the market and the regulatory evolution. Markets will evolve toward a multi-asset class, order-driven model, making it much cheaper to trade and allowing for less friction costs during the execution of trading decisions. Access to the market for investors will be more direct: we are entering a very dis-intermediated phase.”

Commenting on the results, Richard Thornton, partner, SunGard Consulting Services, said, “SunGard is actively engaging with the industry around MiFID and the results of this survey confirm that the next nine months will be a critical time for getting processes in place. As part of our ongoing efforts in this area, we have launched a series of Europe-wide workshops centered around MiFID, where SunGard customers will have the chance to work together with our experts to help define technology requirements for MiFID.”

The survey results will be presented during a panel discussion at SunGard’s FINANZ-TAG in Frankfurt’s Villa Kennedy, by Richard Thornton, partner, SunGard Consulting Services. The panel will be moderated by Handelsblatt’s editor Hermann Kutzer and will include Radostina Ivanova, MiFID expert at the European Commission; Dr. Lutz Raettig, chairman of the Supervisory Board, Morgan Stanley Bank AG; Volker Thier, partner, KPMG Deutsche Treuhand; Felix Capraz, partner, Financial Services, Oracle and Peter Neuhaus, SunGard’s MiFID specialist in Germany.

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