The Influence of Financial Instruments Directive (MiFID) on the Macedonian Capital Market

Abstract

The securities market, as an integral part of the financial market, is a mechanism that allows for the allocation of long-term financial assets, by the legal and natural persons who own the assets, to those subjects that need additional assets for financing their investments plans and programs. A basic precondition for creating a competitive and profitable securities market is having favorable financial environment, which means primarily a quality legal framework, stable currency, as well as “healthy” public finances.

The actual Macedonian Securities Law was adopted in 2005. With several amendments and modifications that were made in the meantime. Some provisions in the current law complies quite closely with MIFID – (Markets in Financial Instruments Directive)

The aim of this paper is to determine the current level of compliance with regard to some crucial provisions, regulated by the Securities Law, and simultaneously to analyze the MIFID provisions regarding this issue, that should be implemented yet. In this direction, we consider that, based on actual research, we would be able to determine the effects of the implementation of MIFID to the securities market participants, as well as overall effects of MIFID to the existence and development of regulated Macedonian securities market. Thus, we would be able to contribute to the process of the standardization of the Macedonian legislation related with the securities market, with the hope that the appropriate and proper implementation of EU directives will give a positive impulse to the functioning of the Macedonian Capital Market.

Key words: MIFID, securities market, Securities Law of the Republic of Macedonia, implementation, regulative