Mifid regulation speeds up amid concern

LONDON – The pace of new documentation and regulation relating to the Markets in Financial Instruments Directive (Mifid) continues to accelerate, even as software vendors and consultants express concern that financial services firms have not taken on board the extent of the changes that will be required to implement the directive. A further postponement of the deadline from November 2007 to April 2008 is likely, they say. But regulators are unlikely to extend the deadline until fairly late in the third quarter or early in the fourth quarter.

Consultants and vendors say they are beginning to see a healthy interest in Mifid-related issues from their clients, but most firms have a disjointed approach, with a focus on some areas and not on others of the wide-ranging directive. For example, best-execution issues have received a lot of press, but the changes the directive will make to the retaining and storing of emails and other electronic