In their assessment of the Markets in Financial Instruments Directive (MiFID), adopted in April 2004 and implemented at Member State level by the end of 2007, Karel Lannoo and Diego Valiante find that the legislation has been remarkably successful in terms of improving market structure and efficiency. In their view, the upcoming MiFID review should therefore take a ‘light touch’, clarifying some definitions and extending the transparency regime to non-equity markets. They argue that easier and cheaper access to consolidated data solutions will also allow end-users to fully participate in the changes brought about by MiFID, ultimately restoring investors’ trust and pushing more liquidity in equity markets. The start of ESMA then should allow for better enforcement of the conduct of business rules.
