Speech McCreevy - Preparing for MiFID

30 June 2006

Speaking at the Institute for European Affairs in Dublin, Commissioner McCreevy presented his view about the opportunities and challenges presented by MiFID for industry players. “Perhaps the baldest choices will face those banks that are currently doing, or could do, systematic internaliser business to compete with stock exchanges”, the Commissioner said. “They will need to consider whether the risks of this business are worthwhile in light of the potential profits, and whether they can carry on similar business as trading platforms such as MTFs.”

With regard to the exchanges McCreevy described the forthcoming changes as ‘profound’ as they will have to face competition from other trading venues for the first time.

The Commissioner called the ongoing stock exchange consolidation as an advantage to consolidation “as long as competition rules are fully respected”. This process might also lead to regulatory changes. “There are, of course, sensitivities as to the regulatory regime which would apply should mergers take place – particularly trans-Atlantic mergers”, McCreevy said. “But, in the long run, the result could be a convergence of different regulatory cultures and greater trading possibilities for investors”, he added.

Full speech

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