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MiFID Connect establishes an IT Advisory Committee to address the IT consequences of MiFID

3 May 2006

Following the establishment of MiFID Connect and its constituent practitioner committees at the end of last year, the participating associations have now set up a specialist IT Advisory Committee comprising association representatives and IT specialists from member firms to interface with the MiFID Connect practitioner committees.

The Committee will help to identify the IT pinch-points in MIFID implementation, and facilitate the development of business sensitive and cost-efficient IT solutions, particularly in the area of best execution, transaction reporting, customer classification, record-keeping and pre- and post-trade price transparency.

It continues to be a common concern of all the experts on the IT Advisory Committee and of the MiFID Connect Associations that given the long lead time that is necessary for industry to examine and agree on the use of technical standards, methods and protocols and backtest new systems and changes to systems any further slippage in the transposition process of MiFID will make it impossible to deliver efficient IT solutions within the timeline set by the Commission, namely by 30th October, 2007. There are substantial concerns in relation to where the desired solution needs to be established on a pan-EU basis, because of the need for a high degree of early clarity as to how different member states are going to interpret, transpose and implement the overarching MiFID requirements – such clarity is unlikely to be achieved until, at the earliest, January 2007, leaving only nine months for IT implementation. In carrying out its role, the MiFID Connect IT Advisory Committee will look to work with IT consultants, providers and other groups, including the MiFID Joint Working Group, to encourage the development of a business sensitive approach towards addressing the IT consequences of implementing MiFID.

Anthony Belchambers, Chairman of MiFID Connect said: “The establishment of the MiFID Connect IT Advisory Committee will help to ensure that the MIFID Connect guidelines on implementing the new Directive combine the primacy of securing market-sensitive and flexible interpretations of the Directive’s requirements with the need for deliverable and affordable IT solutions.”

 
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