MiFID-compliant business solutions

With the aim of helping its clients to fulfil the new obligations and needs deriving from MiFID, the Borsa Italiana Group intends to develop a series of MiFID-compliant services based on the market infrastructures already in place. These new solutions will allow banks, investment firms and MTFs to be in line with the new rules, which must be complied with as of 1 November 2007.

It will be possible to tailor these services to meet specific needs.

» Post-trade transparency  

MiFID requires regulated markets, MTFs and investment firms that carry out transactions off-market (OTC) to publish the information concerning transactions on shares admitted to trading on a regulated market in real time and make it accessible on a general basis to investors.

In this connection it should be noted that the Borsa Italiana Group will continue to provide the off-market disclosure service already available for shares traded on Borsa Italiana’s markets. However, in addition, it will also make it possible to fulfil the post-trade transparency obligations for shares traded on other European regulated markets. This information will be disclosed to information providers and investors in real time using the new versions of Borsa Italiana’s information services.

For more details, click here

» Transaction reporting 

As of  1 November 2007 investment firms will be required to report the details of the transactions concerning all the financial instruments listed on a European regulated market to the competent authority no later than the end of the next trading day. This obligation will apply regardless of whether the transaction was carried out on a regulated market or off-market (OTC).

In this connection the Borsa Italiana Group will make a new transaction reporting service available that will allow intermediaries to comply with the above-mentioned obligation for all trades carried out involving financial instruments admitted to trading on European regulated markets.

For more details, click here

» Best execution

MiFID introduces a more complex best execution regime than the present one. More specifically, intermediaries are required to adopt all the measures needed to obtain the best possible result for the client, taking into account factors such as price, costs, rapidity and probability of execution, nature and size of the order. In addition, investment firms must establish a precise order execution policy and be able to demonstrate to their clients, when requested, that their action conformed with the execution policy.

In response to the developments described above, Borsa Italiana will offer intermediaries a set of information and statistics on trades carried out on its markets in order to help them to comply with information requirements vis-à-vis their clients.

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