Deadline for Mifid to be pushed back, analyst warns

The deadline for banks to implement the European Union’s Market in Financial Instruments Directive (Mifid) will be put back, according to Peter Farley, managing director of analyst Financial Insights.

The deadline for banks to implement the European Union’s Market in Financial Instruments Directive (Mifid) will be put back, according to Peter Farley, managing director of analyst Financial Insights.

“The market is saying it will not happen in November 2007 because those systems would have to be ready by March next year,” he told analyst IDC’s European IT Forum 2006.

He said, “There’s a question about what’s implemented on 1 November and where it is implemented, but everything indicates that 1 November is a firm date.”

Mifid requires banks to link their systems to a greater number of financial markets, because banking clients are entitled to the cheapest prices in Europe when transactions are made on their behalf.

The regulations also require banks and other brokers to adopt a new set of customer protection regulations. Reviews of internal policies and systems will be needed to prove customers have been protected.

However, the chief executive of Mifid think tank the Joint Working Group on IT, PJ Di Giammarino, said Farley’s prediction was just speculation.

Farley said that banks are spending on tools to help them manage the transition to Mifid, but not on the underlying Mifid-compliant systems.

Di Giammarino said that investment banks and other interested parties have already set up around a dozen partnerships that will see companies integrate trade-reporting systems.

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