October 2006
MIFID: Price benchmarking not suitable for structured derivatives, says FOA
Although benchmarking has a part to play in some areas, there is no single approach to best execution that suits all markets.
|
| The UK’s FSA maintains that the idea of price benchmarks for structured derivatives was floated to kick-start debate |
UK regulator the Financial Services Authority issued a discussion paper in May in which it outlined the possibility of introducing benchmarks in order to comply with the best execution requirements of the European Union’s Markets in Financial Instruments Directive (Mifid). But derivatives trade body the Futures and Options Association says that although benchmarking has a part to play in some areas, there is no single approach to best execution that suits all markets. Anthony Belchambers, the FOA’s chief executive, says what is described as “best” should be judged by a firm in the context of its client’s objectives as well as the type and state of the market when a transaction is completed.
You must be a Level 2 subscriber to access this archived content.
If your subscription includes access to the archive, please log in now to view.
To gain access to this content visit the subscription page or call our hotline on +44 (0)207 779 8999.
Subscribe online now and save up to 30% on your subscription.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
Level 1:
- Online access to the past 12 months content
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Level 2:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe