Equiduct, the company that aims to facilitate compliance with the best execution provisions of the Markets in Financial Instruments Directive (MiFID) by providing a single electronic entry point to exchanges, systematic internalisers and other marketplaces, has published a white paper that it claims “cuts through the debate and speculation to clearly highlight Best Execution requirements.”
The company says the white paper is the first in a series of six Equiduct-sponsored documents written by industry experts that it has commissioned to provide an independent perspective on MiFID and its likely impact on the equities market.
Equiduct adds that it aims to help organisations clearly identify their Best Execution obligations for equities under MiFID.
Written by consultant Marcus Hooper, the paper 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.
“With less than ten months until MiFID becomes law, there is a pressing requirement for organisations to stop speculating and start acting,” says Equiduct CEO Bob Fuller. “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,” continues Fuller.
“The reality of today’s 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,” notes 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,” he adds.