25 November 2008

IMA survey on MiFID – information quality on equity deteriorated

Information quality across Europe still has significant room for improvement, and as far as the UK equities are concerned information quality has significantly deteriorated, the IMA survey finds.

Information quality across Europe still has significant room for improvement, and as far as the UK equities are concerned information quality has significantly deteriorated, the IMA survey finds. Main factor behind this are the trade reporting requirements which allow trades to be reported to different venues rather than to a central exchange or venue.

 

Members would welcome the introduction of a rule for order routing similar to Reg NMS in the US”, Guy Sears, Director at IMA said. “Counterparty risk and settlement certainty dominates the selection process of brokers and venues following the settlement debacle arising in London from the Lehman collapse.”

 

Further key issues are:

Ø       Settlement certainty and counterparty risk have become the most relevant factors in the provision of best execution following the collapse of Lehmans.

Ø       Brokers should be required to describe their execution policies and practices upon request.

Ø       A consolidated tape should be introduced for all EEA equity markets.

Ø       An order routing rule for EEA equity venues similar to Reg NMS in the US should be introduced.

Ø       Fixed income managers are generally content with the information that they are getting - absent the credit crunch.

 

Press release

Report

 

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