For Brian Schwieger, executive officer to the London stock Exchange, it is ” the biggest overhaul of financial markets since the big bang [the deregulation put in place by the first british minister Margaret Thatcher, in 1986] “. To be ready for the day of its introduction, it has had to mobilise nearly three hundred people in the last three years.
Wednesday, 3 January, the second european directive on markets in financial instruments, known as ” MIFID 2 “, will enter into force. Ten years after the crisis of 2008, its goal is to bring more transparency and promote a better supervision of markets. In the future, derivative products and bonds, are traditionally traded ” otc “, without Scholarships, will in principle be better controlled. “The change is major,” says Grant Lee, audit firm PwC.
The lessons of the crisis
In 2007, the european Union (EU) has adopted the ” MIFID 1 “, which revolutionized the stock markets. The old Scholarships of yesteryear have lost their monopoly. It is now possible to trade shares on competing platforms, through which pass one-third of stock market transactions. Under pressure, the historical places have had to lower the commissions they pay to their customers and offer better services.
But, while this reform was only in its infancy, the financial crisis broke out. The problem is not come from the stock markets, but products as “exotic” which almost nobody had heard of, and which were passed under the radar of regulators. “The crisis has revealed a great lack of transparency,” Mr. Schwieger.
In April 2009, world leaders met in London during a G20 history. They agreed on a clear roadmap : to better regulate the banks – which is generally done – and better manage…