1. MIFID’s technological impacts:
A feed-back from MiFID Forum France (M2F)
Emmanuel de Fournoux, AFEI
Head of market infrastructures and prudential regulation
Investance
29 September 2006
Investance
29 September 2006 1

2. Agenda M2F: why and what for? M2F: organisation M2F: first results
M2F: next steps
Investance
29 September 2006

3. 1. M2F: why and what for?
Investance
29 September 2006

4. 1. M2F: why and what for? 10 months ago In Paris
Except some “happy few” (professional associations, regulators, treasury, lawyers and compliance officers in banks and investment firms), people where not really aware of the impacts of the MIFID in terms of organisation and information technology.
A strong mobilisation to obtain the “best” regulation at Level 1, Level 2 and local implementation.
A lack of concrete mobilisation within banks and investment firms
Investance
29 September 2006

5. 1. M2F: why and what for? 10 months ago In London
Creation of the MiFID Joint Working Group in April 2005
Creation of MiFID Connect: “you may not survive MIFID”
Numerous MiFID’s conferences
Some people consider that MiFID is as big as “Y2K” in terms of IT consequences
Investance
29 September 2006

6. 1. M2F: why and what for? 6 months ago In Paris
AFEI together with others trade associations, market infrastructure and with some IT providers and data vendors considered that there was a need to work on the “concrete” implementation of MIFID in Paris.
It led, in June 2006, to the creation of M2F whose main goals are:
To work on common technical and IT subjects related to the implementation of MIFID in order to make concrete recommendations
To disseminate the recommendations to the French marketplace
To share our analysis with others European countries and regulators
Investance
29 September 2006

7. 2. M2F: organisation
Investance
29 September 2006

8. 2. M2F: organisation Who? Today: 190 people are registered in M2F
« Every body » involved with MIFID, i.e.
Associations: AFEI, FBF, AFG, AFTI, FDVA, Cossium……
Banks, investment firms and asset managers
IT and system providers: AEMS, GL Trades, SLIB, SUN, IBM…….
Data Vendors: Reuters, Thomson Financial, Fininfo, Telekurs……
Market infrastructure: Euronext, LCH-Clearnet, Euroclear, ITG…
Standardisation bodies: CFONB…
Consultants.
Investance
29 September 2006

9. 2. M2F: organisation Organisation A Steering Committee
Currently the steering committee comprises 26 people representative of the main actors in Paris: professional associations, Markets infrastructures, IT providers, data vendors and consultants.
Three working groups
Market and Reference data
Order Flow
International cooperation
More than ten “task forces” created by the working groups
Investance
29 September 2006

10. 2. M2F: organisation Secretariat
The secretariat of M2F is provided by OTC-Conseil
Investance
29 September 2006

11. 2. M2F: organisation Communication
All documents are available on AFEI’s public web site: (/groupes et projets)
IBM provides M2F members with a system (Quick place) which allows communication, exchange of documents between the members of the working groups (in test)
M2F will publish in the coming days technical papers which will comprise:
Gap analysis between current and MiFID situation
Questions raised by the implementation of MiFID
Main technical impacts for the industry
M2F Recommendations
Investance
29 September 2006

12. 2. M2F: organisation With who?
M2F will share its views with others organisations/associations in Europe in order to achieve consistency in the implementation of MIFID
MIFID groups
Mifid joint working group UK, Deutschland, …..?
Mifid Connect
Professional associations in Europe
Apcims (UK), LIBA (UK), FOA (UK), bwf-verband (Germany), Assosim (Italy), Febelfin (Belgium), REB (Netherlands), APC (Portugal), SSDA (Suede)
………
Investance
29 September 2006

13. 3. M2F: first results
Investance
29 September 2006

14. 3. M2F: first results Transactions reporting to regulators
Gap analysis between AMF et MiFID rules
What has to be suppressed in the AMF rules (repo, lending and borrowing)
What has to be added in the AMF rules (reporting for European Financial Instruments)
Is there a need to maintain reporting for RTO?
Need to have the new format of data 6 month before November 2007
Need to encourage cooperation between regulators in order to avoid burdensome reporting for investment firms.
Identification of execution venues
Use of the MIC code to identify execution venues (Regulated markets, MTFs and systematic internalisers)
Identification of the markets operated by Euronext (yet to come)
Transmission of the MIC code between market participants
Investance
29 September 2006

15. 3. M2F: first results Identification of business entities
Use of the BIC code rather than IBEI code which won’t be available by November 2007
Identification of Financial instruments
Use of the ISO codification
Investance
29 September 2006

16. 3. M2F: first results Example of M2F recommandations Investance
29 September 2006

17. 4. M2F: next steps
Investance
29 September 2006

18. 4. M2F: next steps Work on other technical subjects
Pre and post trade transparency
Storage of data
Best execution
Identification of customers
Consolidation of data
…..
Share M2F views with others countries
Follow CESR’s level 3 working program
General meeting of M2F in Paris on October 19
Participation in the MiFID JWG Conference in London in November
Investance
29 September 2006

19. To Join M2F www.afei.com edefournoux@afei.com
Investance
29 September 2006