Title: Best execution in electronic banking and brokerage: an analysis of business and technical requirements

Authors: Peter Gomber, Gregor Pujol

Addresses: E-Finance Lab, Campus Bockenheim, Postfach 11 19 32, D 60054 Frankfurt am Main, Germany. ' E-Finance Lab, Campus Bockenheim, Postfach 11 19 32, D-60054 Frankfurt am Main, Germany

Abstract: The Markets in Financial Instruments Directive (MiFID) has to be applied by investment firms and regulated markets in Europe from 1 November 2007. The goal of this paper is to discuss and evaluate its key regulatory requirements, associated business and IT implications with an emphasis on the best execution obligation. Based on that, different alternatives for the practical realisation in organisational processes and IT systems will be presented. Empirical evidence is provided based on the results of two studies on the preparatory status for MiFID of the German financial industry conducted in 2006 and 2007.

Keywords: brokerage; trading; MiFID; Markets in Financial Instruments Directive; best execution; best execution policy; investment firms; regulated markets; Europe; Germany; electronic banking; e-banking.

DOI: 10.1504/IJEBANK.2008.020436

International Journal of Electronic Banking, 2008 Vol.1 No.1, pp.1 - 15

Published online: 24 Sep 2008 *

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