The Principals of NexTrade Global have spent decades developing and successfully deploying financial technology and creating financial market centers. Now, having established (1) a reputation of success in financial innovation, (2) a leading, proven trading technology and platform, and, (3) several international patents on a variety of potential products, NexTrade Global is ready to undertake a sophisticated strategy to design a multi-product financial market center with global accessibility and reach. After a careful evaluation of alternative execution strategies, management has identified the following initiatives to launch:
- Immediately apply for recognition as an MTF under the FSA.
- Create a gateway to the US markets.
- Seek large partners with intrinsic liquidity and brand name recognition.
- Create new products.
- Create new products and applications based on exclusive patents.
- Continue to create and protect intellectual property to maximize profitability of the opportunity.
Establish NexTrade Global MTF
The Markets in Financial Instruments Directive (MiFID) is the new regulatory framework from the European Commission for the European Financial Markets (Directive 2004/39/EC).
It is a replacement of the Investment Services Directive (ISD), which had been in place since 1993. MiFID focuses on two paramount objectives – market transparency and protection for the retail investor. The goal of MiFID is for a single, domestic “passport” to empower a market center as world-class financial marketplace within the EU. Investment firms that are authorized to operate within one regulatory jurisdiction in Europe, to be so authorized across all EU jurisdictions.
The end result will be an environment where investors and institutions can transact freely across borders under the same terms and conditions that prevail in their home state. Issuers will have access to more liquid and deeper markets, and ‘hidden liquidity’ will be shown to all participants.
MiFID contains more than 70 articles that will influence exchanges, banks, brokers, pension and asset managers, issuers, investment service providers, and regulators operating in the EU. Firms outside the EU will also need to consider the competitive impact, since the new rules are designed to be attractive to investors worldwide.
MiFID’s scope and level of detail are much greater than its predecessor, covering a far wider range of instruments and increasing the extent of regulatory harmonization. The majority of these obligations apply to all financial instruments including equities, bonds, money market instruments, FX, and all types of derivative (in the initial phase some obligations are limited to equities).
To capitalize on this frontier, Management intends to file for approval as an MTF under the FSA.
