The impact of MiFID on retail investors. Agenda Impact of MiFID on the retail investors, Guillaume Prache, Managing Director of EuroInvestors Conclusions.

Slides:

Advertisements

Similar presentations

Liquidity Fragmentation Analytics November Introduction The aim of the LFA is to provide a simple, unbiased view of what liquidity was available.

Advertisements

Brief on STP – ECN and GMI Currenex. Platforms: GMI ICTS FX Platform GMI MT4 Platform.

P.O. Box 560 Concord, MA USA Tel: Fax: A Broad View of Market Surveillance Josh Galper Managing Principal November.

World Federation of Exchanges | Cambridge, MA | Nov, 2009 High Frequency Trading What Is It & Should I Be Worried? Presented by Larry Tabb (Founder & CEO)

London Stock Exchange Interim Results 6 November 2003.

©Deloitte Discussion Agenda 1. Results – the Deloitte “beursbarometer” 2. The “new” order - Stock Exchanges 3. Facts and Vision.

London Compliance MiFID Overview BCS 25 th April 2005 Simon Barker Head of Regulatory Affairs BNP Paribas London branch.

Lecture 7 Understanding and Measuring Transaction Costs.

14/05/ MiFID and Reg NMS: a test-case for substituted compliance? Karel Lannoo Centre for European Policy Studies (CEPS)

M&A Mid-Market: What After The Credit Crunch? November th M&A Mid-Market Forum, Paris David Bernard Vice-President, Investment Banking & Private.

MICEX vs RTS: Battle of Exchanges Who wins the order flow supremacy? Discussion by Piotr Korczak, University of Bristol 3rd EMG Workshop on Microstructure.

Security Markets Objectives Primary market Secondary Market.

4550: Promotion Strategy II Professor Campbell 2/24/05.

FIN352 Vicentiu Covrig 1 How Securities are Traded (chapter 5)

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved. NASDAQ OMX Europe Product offering and status update Danish Securities Dealers Association:

WHAT ARE THE IMPLICATIONS OF AUSTRALIA'S FIRST TRULY COMPETITIVE EXCHANGE? Michael Somes 6 DECEMBER 2011.

Marie Carone.  Broker-dealers  Exchange  Limit order  Limit order books  Institutional investors  Market-makers  OTC trading.

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved. NASDAQ OMX Europe MTFs (ATS), and the road to competitive markets in US equities Danish.

Securities Markets Chapter 6. Markets Goods Services Ownership of assets Risk exposure.

Chapter 5 How Securities Are Traded. Brokerage firms earn commissions on executed trades, sales loads on mutual funds, profits from securities sold from.

Out of the lab and into the real World J Carl Allen Director and Venture Capital Leader Forrester Research, Inc.

The impact of Electronic Communications Networks (ECNs) on NYSE

MiFID - Technology Solutions In Search of IT Excellence

Instinet Chi-X – An Overview The first order driven pan-European MTF.

Background Synergy Value Evaluation Equity Value Cost of Capital Calculation – WACC components Cost of equity Cost of debt D/E ratio Tax rate.

The FIX Protocol as an Effective Solution for Algorithmic Trading Kevin Houstoun, Co-chair FPL Global Technical Committee, Consultant to HSBC.

MiFID Investor protection. POTEZA BPD d.d. Goals Offer European passport for investment firms  allow sales of financial products and services throughout.

EBay launches virtual outlet mall By: Adam Burlison & David Meigs.

Electronic Trading in OTC Markets: A Risk Management Windfall PRMIA, Toronto February 18, 2009.

Williams Sonoma Annual Report Justin Kovacsik ACG

24 th January 2007Craigcrook Management Services1 COMPLIANCE OFFICERS’ WORKSHOP MiFID – Firms and Markets.

Best Execution & The Changing Landscape of European Equity Markets September 2008.

1 1 Presentation to the Danish Stockbrokers Association Olof Neiglick, CEO October 1, 2008 A new way of trading Nordic equities.

Dr. Tucker Balch Associate Professor School of Interactive Computing Computational Investing, Part I 025: Homework & Demo with Excel Find out how modern.

Copyright© JSE Limited Russell Loubser Chief Executive Officer Johannesburg Stock Exchange October 2009 WFE Dark Pool Discussion 1.

MIFID II and the debt markets. The impact of MiFID II on government bond issuers : MIFID II contains elements that could have adverse effects on the distribution.

Sponsored Research a strategic tool for investor communications Gabriel Didham CFA, Managing Director

Dr. Tucker Balch Associate Professor School of Interactive Computing Computational Investing, Part I 022: Common Metrics for Hedge Funds Find out how modern.

National Treasury, Republic of South Africa 1 SECURITY SERVICES BILL, 2004 PRESENTATION TO THE PORTFOLIO COMMITTEE ON FINANCE BY Samantha Anderson, Director.

Information Post MiFID – How far are we? Niki Beattie Managing Director, The Market Structure Practice BØRSMÆGLERFORENINGEN.

Evolution of European market infrastructure & Options for integration/cooperation among market infrastructures Froukelien Wendt Sr. Financial Sector Specialist.

How will MiFID impact exchanges and how will it change the way they do business? Burçak Inel, Head of Regulatory Affairs, Federation of European Securities.

The Impact of MiFID on the European Exchange Landscape and the Future Of Market Structure Burçak Inel, Head of Regulatory Affairs, Federation of European.

Fidessa Group plc Smart Order Routing Everything You wanted to know (but were afraid to ask) 28 th October 2009 Steve Grob - director of strategy Fidessa.

Securities Markets Chapter 3 Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

EEC3 – The Way Forward Presentation to NIA Annual Conference 12 December 2006 By Iris Rooney, Defra.

© Vattenfall AB WHY DO WE NEED WELL FUNCTIONING EXCHANGE AND BILATERAL MARKETS? Piotr Wąsik Financial Managing Director, Member of the Board VATTENFALL.

Mystery Career Field Functions, Titles and Positions Security Sales and Trading Corporate Finance Broker/ Trader Research Analyst Raise capital for companies.

BUYING AND SELLING A HOME STEP 1 AND STEP 2 PG NAME, TEACHER AND DATE.

1 Markit BOAT 1 st October Post MiFID – Key Trends  Increased competition among exchanges -14 MTFs planned -5 live: Chi-X, ITG Posit, Liquidnet,

Cooperation with Lobbying Monthly newsletter Annual publication Other issues Intro “MiFID and Regulated Markets” Ludovic AIGROT Chair of the FESE MiFID.

Bid Price Ask Price. Market Order When you tell a broker to buy or sell at the current price You don’t specify the price The key is speed of execution.

By: Elson. Equity Market Introduction to Equity Market -General Characteristics of Equity -Represents Ownership Interest -Permanent Source of Long-Term.

CHAPTER FIVE How Securities Are Traded Cleary / Jones Investments: Analysis and Management.

The buy-side perspective Dr. Arjuna Sittampalam, research associate at the EDHEC Risk and Asset Management Research Centre; founder and CEO, Sage & Hermes.

Future of Stock Market in India To understand the future of stock market in India, we need to understand how the stock market works. India has two big.

Investment Planning Chapter 11. Investing Placing money in some medium such as stocks, bonds or real estate in the expectation of receiving some future.

E-Commerce: An Enron View Mike McConnell CEO - Enron Global Technology Arthur Andersen 20th Annual Energy Symposium December 8, 1999.

Chapter 1 Introduction to Corporate Finance.

Markit BOAT 1st October 2008.

THE IMPACT OF MIFID ON THE BULGARIAN CAPITAL MARKET: ONE YEAR LATER APOSTOL APOSTOLOV, CHAIRMAN.

CSCS INVESTORS FORUM Lagos, 31 May, 2017.

Competitive Analysis.

Bistra Ilkova CEO Bulgarian Stock Exchange – Sofia Sofia

The European Consolidated Feed

High frequency market microstructure

Objectives Primary market Secondary Market

Peter Rohr's Team: A Leading Broker at Merrill Lynch

Charles Lewis' Team: A Leading Bank Broker

Presentation transcript:

The impact of MiFID on retail investors

Agenda Impact of MiFID on the retail investors, Guillaume Prache, Managing Director of EuroInvestors Conclusions of the study conducted by Equiduct, Peter Randall, CEO of Equiduct Systems Limited Q&A

Access to Real Time Data

Example Stock name: Societe Generale Time and Date of the Screenshot : January 13 th – 13:49: (CET) Below: order book available on an online broker’s website

Example Stock name: Societe Generale Time and Date of the Screenshot : January 13 th – 13:49: (CET) Below: view of the Home Market order book

Example View of the consolidated order book A broker online connected to the Home Market would have missed the Best European Offer Price available at that exact time on BATS.

Cost of Opportunity

Example 1: AGEAS Number of venues where the stock is tradable during continuous : 5 % of executed value missing the best price on another venue: 8.9% % of trades missing the best price on another venue: 8.6% % of trades executed on the home market missing the best price on another venue: 9.2% Total Value Improvement for January 13th : 1,788 € Average Price Improvement for trades missing the best price: 2.9 € Bps per trade Average Price Improvement for trades executed on the HM missing the best price: 3.2 € Bps

Example 2: ENI Number of venues where the stock is tradable during continuous : 6 % of executed value missing the best price on another venue: 10.04% % of trades missing the best price on another venue: 10.2% % of trades executed on the home market missing the best price on another venue: 16.3% Total Value Improvement for January 13th : 12,895 € Average Price Improvement for trades missing the best price: 4.4 € Bps per trade Average Price Improvement for trades executed on the HM missing the best price: 4.3 € Bps

Example 3: SIEMENS Number of venues where the stock is tradable during continuous : 6 % of executed value missing the best price on another venue: 16.1% % of trades missing the best price on another venue: 15.9% % of trades executed on the home market missing the best price on another venue: 14.1% Total Value Improvement for January 13th : 7,329 € Average Price Improvement for trades missing the best price: 1.8 € - 2 Bps per trade Average Price Improvement for trades executed on the HM missing the best price: 1.9 € Bps

Example 4: SOCIETE GENERALE Number of venues where the stock is tradable during continuous : 5 % of executed value missing the best price on another venue: 15.8% % of trades missing the best price on another venue: 16.5% % of trades executed on the home market missing the best price on another venue: 19.3% Total Value Improvement for January 13th : 16,770 € Average Price Improvement for trades missing the best price: 1.8 € Bps per trade Average Price Improvement for trades executed on the HM missing the best price: 1.9 € Bps

Conclusions Brokers only displaying information from the Home Market would miss between 20-40% of the liquidity available on other venues It results in a cost of opportunity to the investors who have no access to it Between 10-20% of the trades executed on the Home Markets could have achieved a better price on another venue The cost of opportunity in 2010 for trades on the most liquid stocks missing the best price = 136M€ It is supported mostly by retail investors because retail brokers are mainly only connected to Home Markets  MiFID has introduced competition to the equity market but the benefit of that competition are not available to the retail investors