MiFIDThe new Markets in Financial Instruments Directive (MiFID or Directive 2004/39/EC) was officially implemented on 1 November 2007. MiFID gives investment firms an effective ‘single passport’, allowing them to operate throughout the European Union (EU) on the basis of authorisation in their home Member State.
MiFID's objective is to remove cross-border trading barriers and increase competition, leading to the creation of a single market in investment services throughout the EU. MiFID will have an impact on the trading of all asset classes including cash equities, fixed income and derivatives. The financial institutions that are directly impacted are investment managers (when providing portfolio management services – collective investment schemes are out of scope), stock exchanges and broker-dealers.
SWIFT has completed an initial analysis of the impact of MiFID on the relevant ISO 15022 and ISO 20022 financial message standards that it supports. The resulting changes are now available for use.
SWIFT has worked with the relevant industry bodies to develop new standard messages under ISO 20022 that can be used to meet the new transaction reporting requirements of MiFID. SWIFT will support the new ISO 20022 transaction reporting messages on the SWIFT network providing a secure channel for investment firms to report their activity to market regulators.
SWIFT is also supporting the management and use of key reference data identifiers such as BIC and the Market Identification Code (MIC), which are crucial to the successful operation of MiFID transaction and market transparency data flows.
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