A strategic opportunity is a prospect for competitive advantage through cost efficiencies and value creation. Firms with a strategic view on compliance to regulatory change can create significant strategic opportunities. The regulatory environment of investment services firms and markets throughout the European Union offers such opportunities by using MiFID compliance as a source of competitive advantage. MiFID provides an integrated framework for both efficiency and value creation.

This article responds to the need to understand the impact of MiFID on financial entities from both a compliance and a business perspectives. In particular, it addresses the elements of a business model in terms of potential revenue and cost savings opportunities from new markets, client management, and internalization. It discusses how each of the above variables help a firm create value by fundamentally re-thinking its business model from the characteristics of an autonomic business model. This uses the optimization factor as the logic within an autonomic system. It addresses questions such as: How will the investment firm convert a compliance requirement into a value-added activity? How will investor clients benefit from the compliance requirements of MiFID? An optimization matrix is used to determine efficiencies and value-creation areas.