Institutional Investment and MIFID Revision

Nathalie ORIOL Maître de conférences, Conservatoire national des arts et métiers (CNAM).

MIFID has led to the proliferation of orders execution systems in Europe. Three years after launching, results are subject to discussion and pave the way towards a substantial revision project. In order to throw light on regulatory debate, this paper studies institutional investors’ preferences for order execution methods. Based on Euronext Paris data, the study shows that trading services diversification and a certain degree of order flows fragmentation are justified when accompanied by adapted transparency rules.