Confusion of the European Union’s markets in financial instruments directive has slowed planning for its implementation by U.K. investment banks and brokers, according to Financial News. With the November 2007 effective date just 15 months away, the directive appears to be flying in the face of recommendations by the U.K.’s Financial Services Authority, which favors external benchmarking of fixed-income and derivatives trading. “Many firms have stopped work on planning how to implement [the directive]’s best-execution provisions because they consider implementing the benchmarking proposal is not practicable,” the London Investment Banking Association told FN. The FSA has said that the legislation was “insensitive” to companies’ needs.
