The London Stock Exchange (LSE) is consulting on proposed changes to its rulebook to accommodate the Markets in Financial Instruments Directive (Mifid).
The main features of the proposed new rules include: a 50% reduction in the number of rules and definitions; amendment of the scope of the on-exchange rule; the removal of transaction reporting rules; a reduction of order book trading rules to around 15 rules; consolidation of off-order-book trading rules into around 60 rules; consolidation of market-making rules into one section (including gilt-edged and fixed interest market making); creation of a single section combining settlement, clearing and benefit rules; no change to compliance procedures; and minor changes to the default procedures.
The LSE has also published a tracker document that lists every definition and rule pointing out whether they are being kept or deleted.
The deadline for comments on this consultation is September 10, 2007. Subject to feedback received, the LSE proposes to issue a rules confirmation notice during September 2007, with the rules coming into force on November 1, 2007.