In the wake of the regulatory tsunami caused by MiFID II, sell-sides are struggling to manage cost pressure alongside extensive new requirements. MiFID II will introduce a far more comprehensive and detailed framework than its predecessor, impacting transparency, market structure, and organizational requirements. It will also significantly strengthen investor protection. Operational efficiency and traceability will be key to remain in business post MiFID II, as the new regulatory requirements will touch virtually every area of trading. It will be practically impossible to comply with MiFID II without implementing technology designed for this purpose.
With MiFID II on the horizon, banks and brokers across Europe have initiated system review processes to ascertain the effectiveness of their current technology. Many firms are also taking this opportunity to consolidate systems to get the full picture of their trading, position and risk management across asset classes. It is also a golden opportunity from a practical perspective to clean up the platform and reduce the number of vendor relationships. While consolidation makes perfect sense from a business perspective, it does complicate the system selection process, as the new platform must support varying needs across asset classes and business functions.
Itiviti has prepared an overview of today’s multi-faceted sell-side technology stack to facilitate a discussion, layer-by-layer, around the expected impact of MiFID II.
Blog With MiFID II regulation now less than 12 months away, the race to ensure compliance heats up. In a recent letter penned by Steven Maijoor ESMA Chair, Mr Maijoor expressed concerns on the “potential establishment of networks of Systematic Internalisers (SIs) to circumvent certain MiFID II obligations.” The implementation of MiFID I saw the introduction […] June 13, 2017
Blog It was a pleasure to have an opportunity to speak at the 2017 Americas Trading Briefing, which was graciously hosted by Goldman Sachs. As usual, the room was filled with more than 250 senior market participants and 25 expert speakers to discuss important topics, trends and issues we face together as the FIX Trading Community. […] June 7, 2017
Articles & Reports In recent years, exchange-traded funds (ETFs) have seen phenomenal activity and growth. Regulation, product innovation and investor appetite have driven global Assets under management (AUM) to record levels, while also fueling increasing market structure complexity and straining trading platform capabilities across the board. Itiviti, in conjunction with GreySpark Partners, recently engaged in a comprehensive review […] May 18, 2017
Automation & Testing For many sell-side firms, client onboarding and certification is a drag on productivity. The traditional methods used to perform these processes are manual, and therefore time-consuming. Because the process is so labor intensive, some firms maintain substantial backlogs of clients waiting for connections to trade. Slow onboarding is costing the business, as it leads to […] May 2, 2017