Financial Crisis Of 2008 Essay - 956 Words

With the Financial Crisis of 2008, many governments and regulators were forced to relook at their regulatory policies taking into consideration the innovations that the financial services world is continuously subject to. In European Markets particularly, the market was fragmented as well as the regulations were limited in scope. This called out for the need of MiFID II, which not only widens the scope of directive, but also addresses the issues which came out during the crisis. Given the directive, the global investment research industry is on the cusp of major disruption. While a plethora of issues confront both the buy- and sell-sides in the lead up to the implementation in January 2018, pricing appears to remain the key area of concern†¦show more content†¦With the MiFID II regulations to go-live shortly and a largely negative outlook for major sell-side players on the horizon, brokers will need to make bold decisions around their future business models. II. Introduction European Union (EU) observed Investment Services Directive from 1993 to protect its investors. However, with technological disruptions taking place, the directive became irrelevant. Hence, under circumstances of growing competition, EU came out with Markets in Financial Instruments Directive (MiFID) in 2004 to improve its competitiveness. The regulations, implemented in 2007, sought to create a single market for investment services and activities to ensure a high degree of harmonised protection for investors in financial instruments. Yet, the shortcomings of MiFID became evident during the financial crisis of 2008. To improve these weaknesses inherent in the MiFID structure, MiFID II was introduced to increase transparency in the system. While MiFID was focused on opening up markets to greater competition, MiFID II seeks to improve the business practices, and bring trading activities on to a transparent and organised trading venue. In doing so, MiFID II seeks to directly address major shortcomings that precipitated during the financial crisis, such as opacity in derivatives and other over-the-counter markets. One of the guidelines of MiFID II states that investment firmsShow MoreRelatedThe 2008 Financial Crisis Essay2289 Words   |  10 PagesIntroduction In 2008, the world experienced a tremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. After posing a huge effect on the U.S economy, the financial crisis expanded to Europe and the rest of the world. It brought governments down, ruined economies, crumble financial corporations and impoverish individual lives. 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