La fragmentation des flux d'ordres et la révision de la Directive MIF : apports de l'économie industrielle

In the supply chain of investment services, trading activity is at the heart of several breakthroughs resulting from the rise of new forms of competition and new regulations. The Market in Financial Instruments Directive (MiFID) constitutes a major revolution in the organization of the trading process in Europe, especially as the historical principle of order flow centralization has been abandoned. Innovation and strategic confrontation between market and bulge bracket firms determine the way markets fragment. This research analyzes the conditions under which competitive mechanisms between those actors can either converge or differ from the objectives of integrity and quality of financial markets. In the light of existing complementarities between microstructure and industrial organization of financial markets, this article constitutes an original analysis of the consequences of MiFID and analyzes major revision issues concerned with the Directive.