Equiduct sponsored White Paper written by independent industry expert demystifies Best Execution obligations under MiFID

5 March 2007

- Free white paper cuts through the debate and speculation to clearly highlight Best Execution requirements
- Provides first clear implementation analysis of MiFID level 1 and level 2 texts
- First in a series of six free Equiduct sponsored MiFID white papers

Equiduct is pleased to release the first White Paper in a series of six free Equiduct sponsored documents written by industry experts that have been commissioned to provide an independent perspective on MiFID and its likely impact on the equities market. The white paper will be available for downloading from www.equiduct.eu from Monday March 5th.

The paper aims to help organisations clearly identify their Best Execution obligations for equities under the Market in Financial Instruments Directive (MiFID), which becomes law in November this year. The Equiduct sponsored white paper, written by leading market expert Marcus Hooper, aims to cut through all the random analysis, debate and speculation around Best Execution by directly referencing the original EU MiFID level 1 and level 2 texts, and highlighting the specific best execution requirements that organisations will need to address under MiFID.

The white paper has been written to provide guidance to financial institutions relating to the practical implementation of MiFID best execution. It features a clear interpretation of the volumes of MiFID documentation, and includes guidelines so that firms particularly in the equities trading market can quickly arrive at an understanding of their underlying implementation requirements for the achievement of best execution.

According to Equiduct CEO, Bob Fuller: with less than ten months until MiFID becomes law, there is a pressing requirement for organisations to stop speculating and start acting. If organisations are to make a success of MiFID they have got to move beyond opinion and actually determine what to do now to make sure their businesses are ready when the new rules become law on November 1st 2007. That is why for our first Equiduct sponsored white paper we asked Marcus Hooper to focus on what the MiFID documentation actually says, and then come up with some clear recommendations based on the specific MiFID level 1 and level 2 texts.

Marcus has also clearly referenced all of the MiFID source documentation, and included example scenarios to explain how best execution is expected to work in real-life trading situations, he continued. We are delighted to have sponsored this important work in the run-up to the launch of our portfolio of MiFID solutions and services, which will range from a European consolidated tape offering through to a best execution service for organisations that do not want to build or buy their own smart order routing engines.

The reality of todays situation is that many firms are still confused about the most fundamental aspects of best execution, despite the fact that they will all have to implement systems, design business processes and comply with the new rules from November, added Marcus Hooper. It is great that with its series of sponsored white papers Equiduct has provided a platform to discuss the MiFID best execution framework, and explain when, how and to whom best execution must be provided.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development