Mifid II: first reaction

Author: Gemma Varriale | Published: 20 Oct 2011

Investment banks and asset managers look set to be among the biggest losers after today’s adoption of the twice-delayed Mifid II proposals.

In a press conference this afternoon, Michel Barnier, European commissioner for internal market and services, called this a decisive week for Europe, marking a complete overhaul of the way financial markets work.

The reforms are an important part of Europe’s post-crisis supervisory architecture, aiming to increase competition and transparency in the European securities market and modernise market structures.

But according to Harry Eddis, counsel at Linklaters, “Mifid II will not only reduce investment banks’ competitive advantage in some areas, for example the seeming eradication of dark pools, but also increase their costs by imposing increased surveillance and compliance requirements on...