Mifid in the risk mix

Six months after the Markets in Financial Instruments Directive came into force, many European banks and brokers are still playing catch-up with regard to establishing internal systems for processes such as deal documentation, dissemination of data to investors, best execution and post-trade transparency. Michael Marray reports

The fact that the European Commission's Markets in Financial Instruments Directive (Mifid) came into force just as the current market turbulence was gathering strength last autumn has meant that the new regulations pose an additional burden for banks when management is having to spend much of its time dealing with the effects of the credit crunch.

As well as rules relating to the suitability of structured products for any given client, brokers and banks have onerous risk management and reporting