Kaizen’s CEO Dario Crispini spoke to Best Execution’s Lynn Strongin-Dodds about MiFID a decade on.
At the time MiFID was introduced Dario was the head of the then FSA’s Transaction Monitoring Unit and managed the regulator’s transition to MiFID reporting including introducing the approach to fines for incorrect transaction reporting.
Here’s an exert from the article:
Long before the financial crisis wreaked havoc on stock markets and investment banks, MiFID I was being hatched in the hallowed halls of the European Commission. It was officially launched in 2007 with the aim to shake up the status quo in the equities landscape. However, as events the following year proved, much more work was needed to be done to corral the worst of the excesses and improve transparency.
The dispersion of liquidity has been another major challenge. “The removal of the concentration rules under MiFID I was a good thing, in terms of competition, but one of the unintended consequences was the fragmentation of the liquidity,” says Dario Crispini, founder and CEO at Kaizen Reporting and former manager of the transaction monitoring unit of the Financial Service Authority between 2001 and 2010. “As the market evolved, this led to more complex trading strategies and high frequency traders and algorithmic trading which caused distortions.”
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