MIFID2 – the impact on non-EU fIRMS

2017 ◽  
Vol 18 (3) ◽  
pp. 67-71
Author(s):  
Simon Crown ◽  
Steven F. Gatti ◽  
Matthias Feldman ◽  
Paul Landless
Keyword(s):  
Financial Instruments ◽  
The European Union ◽  
Content Type ◽  
Private Banks ◽  
Commodity Derivatives ◽  
The Impact ◽  
European Markets ◽  
Practical Implications ◽  
Relevant Interaction ◽  
The Eu

Purpose An update for firms located outside the European Union of the possible extra-territorial impact of certain provisions in the recast Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (together referred to as “MiFID2”). Design/methodology/approach The focus is on the issues that are most likely to have an impact on non-EU firms, including buy/sell side financial institutions and private banks. Findings That the impact of MiFID2 will be felt far beyond the EU, particularly in relation to product governance, inducements and dealing commission, trading obligations, position limits for commodity derivatives and the new regime for accessing EU markets. Practical implications Non-EU firms need to assess their interaction with EU clients, counterparties and markets to identify the likely impact of MiFID2. Relevant interaction could include: manufacturing and distribution of financial instruments; the provision of investment research and dealing services to EU clients and trading in instruments which are admitted to trading on EU markets. Originality/value This article will be of interest to “third-country” firms, located outside the EU, but with a European connection, either in terms of European counterparties, investors or accessing European markets.

scholarly journals The regulations of shipping conferences in Taiwan referring to the EU to repeal the block exemption for liner conferences

2019 ◽  
Vol 4 (4) ◽  
pp. 365-394
Author(s):  
Rong-Her Chiu
Keyword(s):  
Strategic Alliances ◽  
Questionnaire Survey ◽  
Market Competition ◽  
Academic Research ◽  
Deep Understanding ◽  
The European Union ◽  
Content Type ◽  
The Usa ◽  
The Impact ◽  
The Eu

Purpose The first well-known liner shipping conference was created for the UK/Calcutta trade in 1875. However, the European Union (EU) decided to abolish repeal the liner conferences system with effect from October 18 2008. This paper aims to study the governing regulations on shipping conferences in Taiwan along with investigating the impact on the EU to repeal conferences. The regulation on liner conferences in the USA is also briefly referred. Design/methodology/approach Literature review and questionnaire survey are used to conduct the study. This paper reviews important literature relating to the EU to repeal the conferences system and its impact on liner market competition to/from European trade routes, with discussions on the US and Taiwan regulations on shipping conferences. Questionnaire survey data, collected from published report and this research present shippers’ and carriers’ responses on the changes of regulations on liner conferences. Findings Shippers are strongly supporting the repeal of the conferences system. Academic research results basically reveal that the liner market will be more competitive in the trades to/from the USA and the EU after the repeal of the conferences. For Taiwan, its regulations are rather simple and loosely control over the liner conferences; therefore, if the shipping administration intends to enhance the inspection of the agreements of conferences and strategic alliances, more detailed regulations should be prepared, and the provisions of the EU or USA would be a good reference. Practical implications Through the discussions on the legal treatments of shipping conferences from the USA, the EU and Taiwan perspectives, this paper provides shipping researchers with not only a clear evolution of the liner conferences but also a deep understanding of the impact to repeal the conferences on liner market competition. Originality/value This paper reviews important literature and related legislations on liner conferences including the USA, the EU and Taiwan. The different responses on the EU to repeal the conferences system from shippers and carriers are discussed. The impact on liner market competition is presented.

Targeting the Digital Agenda for Europe: a new approach for estimating ICT R&D expenditures

Info ◽  
2014 ◽  
Vol 16 (1) ◽  
pp. 45-61 ◽  
Author(s):  
Juraj Stančík
Keyword(s):  
Information And Communication Technologies ◽  
Communication Technologies ◽  
The European Union ◽  
Public And Private ◽  
New Approach ◽  
Content Type ◽  
Labour Costs ◽  
Information And Communication ◽  
Practical Implications ◽  
The Eu

Purpose – The main goal of this paper is to create a methodology for estimating public research and development (R&D) expenditures on Information and Communication Technologies (ICT) in the European Union (EU). The study further applies this methodology on business expenditures on R&D (BERD) data across all sectors and estimate ICT BERD within each of them. Then the study assesses the evolution of these expenditures in the context of the Digital Agenda for Europe (DAE) and its specific target to double them by 2020. Design/methodology/approach – The study assumes that the share of public ICT R&D expenditures in total public R&D expenditures is similar to the share of ICT R&D labour costs. The study bases its estimation on government budget appropriations or outlays on R&D (GBAORD). Findings – EU public ICT R&D expenditures grew steadily over the period 2004-2010 and in 2010 reached 5.9 billion. The study also estimates that the total EU ICT BERD in 2010 amounted to 15.8 billion. Regarding the DAE target about ICT R&D expenditures, the study shows that, in both public and private, the EU drops behind. Research limitations/implications – The study estimates that substantial ICT BERD can be found also in non-ICT sectors. Practical implications – The methodology allows for monitoring one of the DAE targets. Originality/value – The methodology currently represents the only way for measuring public ICT R&D expenditures in the EU.

The impact of the EU Directive on non-financial information: Novel features of the Italian case

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rosa Lombardi ◽  
Antonietta Cosentino ◽  
Alessandro Sura ◽  
Michele Galeotti
Keyword(s):  
Institutional Theory ◽  
Financial Information ◽  
Institutional Pressures ◽  
The European Union ◽  
Public Companies ◽  
Content Type ◽  
Reporting Practices ◽  
Eu Directive ◽  
The Impact ◽  
The Eu

Purpose This paper aims to examine the European Union (EU) 95/2014 Directive’s impact on large public companies. It chose Italy as a pivotal country that made non-financial information assurance mandatory, going beyond the EU Directive’s original requirements. Specifically, it investigates how the UE Directive fosters institutionalisation of the non-financial reporting (NFR) process in organisations. Design/methodology/approach Two large public companies in Italy are used as case studies. Data are gathered from annual and integrated reports, institutional websites and semi-structured interviews with the managers and employees involved in different organisational positions. The authors adopted the neo-institutional theory as a theoretical lens to identify the organisations’ response to the (external) institutional pressures influencing corporate reporting practices. Findings The findings demonstrate how the EU Directive fostered changes to large public companies’ reporting practices and external pressures contributed to influencing changes to internal organisational practices in terms of new internal processes, procedures and structures. These changes are motivated by the companies’ need to guarantee reliable information to be produced in their non-financial reports. Practical implications This paper helps academics and policymakers to advance NFR practices by understanding regulatory factors that can foster changes in the internal reporting process and responsibility within organisations. Originality/value The findings provide some empirical insights to foster reflections on the EU Directive’s effectiveness in changing reporting practices. This paper contributes to enriching the literature on institutional theory in shaping mandatory non-financial disclosure by identifying the institutional pressures influencing the effectiveness of regulations to change NFR practices.

scholarly journals Geopolitical disruptions and the manufacturing location decision in multinational company supply chains: a Delphi study on Brexit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hamid Moradlou ◽  
Hendrik Reefke ◽  
Heather Skipworth ◽  
Samuel Roscoe
Keyword(s):  
Delphi Study ◽  
Imperfect Information ◽  
Location Decision ◽  
The European Union ◽  
Content Type ◽  
Manufacturing Location ◽  
Eclectic Paradigm ◽  
The Uk ◽  
The Impact ◽  
The Eu

PurposeThis study investigates the impact of geopolitical disruptions on the manufacturing supply chain (SC) location decision of managers in UK multinational firms. The context of study is the UK manufacturing sector and its response to the UK's decision to leave the European Union (EU), or Brexit.Design/methodology/approachThe study adopts an abductive, theory elaboration approach and expands on Dunning's eclectic paradigm of international production. A Delphi study over four iterative rounds is conducted to gather and assess insights into manufacturing SC location issues related to Brexit. The panel consisted of 30 experts and managers from a range of key industries, consultancies, governmental organisations, and academia. The Delphi findings are triangulated using a focus group with 38 participants.FindingsThe findings indicate that the majority of companies planned or have relocated production facilities from the UK to the EU, and distribution centres (DCs) from the EU to the UK. This was because of market-seeking advantages (being close to major centres of demand, ease of access to local and international markets) and efficiency-seeking advantages (costs related to expected delays at ports, tariff and non-tariff barriers). Ownership and internalisation advantages, also suggested by the eclectic paradigm, did not play a role in the location decision.Originality/valueThe study elaborates on the OLI framework by showing that policy-related uncertainty is a primary influencing factor in the manufacturing location decision, outweighing the importance of uncertainty as an influencer of governance mode choices. The authors find that during geopolitical disruptions managers make location decisions in tight time-frames with incomplete and imperfect information, in situations of high perceived uncertainty. The study elaborates on the eclectic paradigm by explaining how managerial cognition and bounded rationality influence the manufacturing location decision-making process.

Budget allocation design in the EU pre-commercial procurement for innovation

2020 ◽  
Vol 20 (1) ◽  
pp. 88-96
Author(s):  
Nicola Dimitri
Keyword(s):  
Budget Allocation ◽  
The European Union ◽  
Social Implication ◽  
Content Type ◽  
Innovative Solutions ◽  
Probability Of Success ◽  
To Receive ◽  
Practical Implications ◽  
The Eu ◽  
Three Phases

Purpose Pre-commercial procurement (PCP), introduced by the European Commission in 2007, is the most important purchasing procedure available to the European Union public sector to solicit innovative solutions from the business sector. As such solutions are not yet in the market, they first require research and development (R&D) activities. PCP is concerned with procuring R&D services only, and typically consists of three phases. This paper aims to discuss how the budget available to the contracting authority (CA) may be optimally allocated along such three phases. Design/methodology/approach The paper is mostly theoretical and the CA is assumed to maximise the overall probability of success in the PCP, that is the probability of receiving at least one successful proposal at the end of the procedure. Findings The main finding of the paper suggests that, for a CA, the optimal budget allocation across the three phases of the PCP depends on how likely it is to receive successful proposals in various stages of the procedure, as well as on the rewards paid to the invited companies. Practical implications In this paper, the author proposes a methodology for the optimal budget allocation of a CA and discusses how the approach could be practically implemented, pointing out its potential difficulties. Social implications The main social implication of the findings is represented by the best use of the available budget, hence taxpayers’ money. Originality/value To the best of the author’s knowledge, no existing paper has discussed the optimal budget allocation in a PCP as in this work.

scholarly journals Euro clearing after Brexit: shifting locations and oversight

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sven Van Kerckhoven ◽  
Jed Odermatt
Keyword(s):  
The European Union ◽  
Content Type ◽  
Financial Centre ◽  
European Regulatory ◽  
Financial Infrastructure ◽  
The Uk ◽  
City Of London ◽  
The Impact ◽  
The City ◽  
The Eu

Purpose This paper investigates the impact of moving Central Counterparty Clearing Houses (CCPs) that clear euro-denominated transactions to the Eurozone after the withdrawal of the UK from the European Union. Prior to Brexit, the City of London had a dominant position in euro-clearing, but in the aftermath of Brexit, clearing houses might decide to move to the EU27. This paper aims to investigate the impact of moving euro-clearing to the EU27. Design/methodology/approach This paper provides an economic, political and legal investigation based on desk research. It studies the relevant materials, as they relate to the functioning of Central Counterparty Clearing in the aftermath of Brexit, with specific attention to the potential shift of locations and oversight. Findings The development of a EU27 financial hub and the possibility to increase oversight over euro-denominated financial transactions, which were partly at the roots of the financial and Eurozone crisis, could strengthen the market shaping of European financial markets. However, localizing euro-denominated transactions in Europe could potentially give rise to efficiency losses and a higher risk for companies and investors. Furthermore, the European regulatory framework currently faces certain weaknesses, obstructing the regulatory potential of the EU. Research limitations/implications As the Brexit negotiations are not yet finished, this paper does not intend to set out a definite outcome of the processes currently taking place. Practical implications Shifting locations and oversight of CCPs as a result of Brexit could lead to the establishment of a large financial centre within the EU-27. At the same time, it is to be expected that such a development will have a significant impact on the financial infrastructure of the City of London. Originality/value There exists an important trade-off with regard to shifting locations that need to be at the forefront of the discussions and the negotiations when dealing with Brexit. This seems to be neglected in a lot of the current policy debates. This paper takes stock of the ongoing debate and how it relates to the functioning of CCPs.

scholarly journals Motivators of SME initial export choice and the European Union regional effect in manufacturing

2017 ◽  
Vol 23 (1) ◽  
pp. 35-55 ◽  
Author(s):  
Vassilios Stouraitis ◽  
Mior Harris Mior Harun ◽  
Markos Kyritsis
Keyword(s):  
Host Country ◽  
Home Country ◽  
Empirical Work ◽  
The European Union ◽  
Regional Effect ◽  
Resource Based View ◽  
Content Type ◽  
Eu Membership ◽  
Practical Implications ◽  
The Eu

Purpose A global reach in exporting has been linked to profitability. The purpose of this paper is to answer the influence of EU regulations on exporting decisions of UK manufacturing small- and medium-sized firms (SMEs) by investigating the home and host country-based motivators behind SMEs’ choice to export, and export regionally, within the EU. Design/methodology/approach Contrasting the Uppsala and resource-based view perspectives (using a sample of UK independent manufacturing SMEs and utilizing a survey, correlation analysis and factor analysis), the paper finds and describes the effect of the most recurrent motivators from the literature on the SMEs’ decision to export within the EU or not. Findings The paper finds that SMEs whose latest international market entry was not in the EU scored significantly higher in the factor scorings for the motivators in the external dimension than participants whose latest entry was in the EU. Several motivators show an association with the choice to export per se. The importance of regionalization to export initiation (and EU membership) within the EU is emphasized in the results. Research limitations/implications The sample size is limited. Practical implications In the current climate, how can SMEs reduce market research costs for managers by relying solely and proactively on home country and internal advantages and motivators and being more aware of their surroundings? Managers and policymakers can direct their strategy, resources and policy more efficiently according to motivators; internal home country motivators (e.g. strengths of prices of products) direct the SME to overcome inter-regional liability of foreignness, while host country motivators (e.g. legal restrictions in the host country) direct them to regional ventures. Originality/value The theoretical and empirical work on the topic, until recently, has been fragmented and inconsistent focusing on specific motivators but not necessarily justifying the selection or origin of variables even less on SMEs.

scholarly journals The impact of securities regulation in the European Union on M&A: Does it compensate to go beyond borders?

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rita Monteiro ◽  
Sónia Silva
Keyword(s):  
European Union ◽  
Investor Protection ◽  
Equal Treatment ◽  
The European Union ◽  
Content Type ◽  
Cross Border ◽  
Eu Directive ◽  
Takeover Bids ◽  
The Impact ◽  
The Eu

Purpose The purpose of this study is to examine the impact of the transposition of the EU directive that regulates M&As on cross-border deals. Acquirers of targets located in the European Union (EU) must comply not only with takeover rules set individually by member states but also with European Council Directives. The most significant of these Directives in the context of mergers and acquisitions (M&As) is the Takeover Bids Directive (TBD). The intent of the Directive is to ensure equal treatment for all companies launching takeover bids or that are subject to a change in control, providing minimum harmonization rules in view of creating a transparent environment for cross-border takeovers. Design/methodology/approach This study uses the event-study and difference-in-differences approaches. Findings Using a sample of 2,129 M&As conducted between 2000 and 2015, this paper finds positive acquisition synergy for acquirers targeting firms from countries with stronger investor protection rules compared to the average of the EU, but no evidence regarding cross-border deals. The results support the prediction that regulation makes countries diverge more depending on their ex ante level of investor protection. Originality/value This study examines the impact of the enactment of the TBD on announcement returns of M&As in the EU.

Effective supply chain management

2020 ◽  
Vol 36 (7) ◽  
pp. 27-29
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Design Methodology ◽  
Reading Time ◽  
The European Union ◽  
Content Type ◽  
Pertinent Information ◽  
The Uk ◽  
Practical Implications ◽  
The Eu

Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings As soon as the UK voted to leave the European Union (EU) in 2017, one of the key discussions among businesses throughout Europe centered on what the likely impact would be on supply chains involving UK companies. Whether you were a mainland European country with supply chain partners in the UK, or a UK manufacturer that depended on European companies for supplies, the uncertainty and potential disruption to well-grooved supply chain processes became a major headache. At first, it was the uncertainty that proved the major issue as governments played politics and refused to define the likely deal that would enable supply chain terms to be put in place. As the UK left the EU and the terms of the overall deal became clearer, firms then had to work out how whether any necessary changes to their supply chains were required. Practical implications Provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Original/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Regulation of uncovered sovereign credit default swaps – evidence from the European Union

2015 ◽  
Vol 16 (4) ◽  
pp. 425-443 ◽  
Author(s):  
Florian Kiesel ◽  
Felix Lücke ◽  
Dirk Schiereck
Keyword(s):  
European Union ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Credit Default Swap ◽  
The European Union ◽  
Content Type ◽  
Sovereign Credit ◽  
Credit Default ◽  
The Impact ◽  
The Eu

Purpose – This study aims to analyze the impact and effectiveness of the regulation on the European sovereign Credit Default Swap (CDS) market. The European sovereign debt crisis has drawn considerable attention to the CDS market. CDS have the ability of a speculative instrument to bet against a sovereign default. Therefore, the Regulation (EU) No. 236/2012 was introduced as the worldwide first uncovered CDS regulation. It prohibits buying uncovered sovereign CDS contracts in the European Union (EU). Design/methodology/approach – First, this paper measures spread changes of sovereign CDS of the EU member states around regulation specific event dates to detect whether and when European sovereign CDS reacts to regulation announcements and the enforcement of regulation. Second, it compares the CDS long-term stability of the EU sample with a non-EU sample based on 44 non-EU sovereign CDS entities. Findings – The results indicate widening CDS spreads prior to the regulation, and stable CDS spreads following the introduction of the regulation. In particular, sovereign CDS of European crisis-hit entities are stable since the regulation was introduced. Originality/value – The results show that since the regulation of uncovered CDS in the EU has been enacted, the sovereign CDS market is stable and less volatile. Based on the theory about speculation on uncovered sovereign CDS by betting on the reference entity’s default, the introduction of Regulation (EU) No. 236/2012 appears to be an appropriate measure to stabilize markets and reduce speculation on sovereign defaults.

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