The marketplace is waiting in anticipation for ESMA’s final technical guidance – expected this month – on the wide-ranging MiFID II regulation due to come into effect in January 2017.
After delaying publication date from July, ESMA looks set to deliver on time. This is good news, as practitioners surely need as much time as they can get to prepare for MiFID II’s changes. January 2017 is just 15 months away, and much work still needs to be done.
As you’re doubtless aware, MiFID II will both build on its predecessor – MiFID I – and expand its remit beyond equities to fixed income, derivatives and other markets.
MiFID II is both more prescriptive and wide in scope. Its stated aim of bringing new levels of transparency to Europe’s markets translates into new rules around internal order-matching, trade-reporting, testing of algorithms, post-trade work flow and a whole host of other areas of the securities business.
As an example, the rules with respect to systematic internalization will drastically change. Firms may find they now qualify as SIs where previously they did not.
All of these changes require big decisions – on business strategy, operations and technology – from those affected, many of whom have been delaying until they understood the detail of the requirement.
Here is where the hard work begins. The new guidance will require a careful reading to understand the degree to which firms are affected. The big decisions will revolve around how much time, effort and money will be required to comply, and whether certain affected business activities warrant the investment.
Some will identify opportunity.
FIX Infrastructure It goes without saying that it’s imperative for trading technologists to thoroughly test their systems before the put them in a production environment. Clearly, building a market-beating trading platform requires a high level of uptime and a propensity for failure that’s as close to zero as possible. And for years technologists have used a range […] November 5, 2018
Risk & Compliance Nine months into the MiFID II era, it’s time to look beyond the compliance issues and start considering the business opportunities presented to firms operating under the Systematic Internaliser regime. With the support from a value-adding regulatory solution, SI status can be used for competitive advantage, suggests Jonas Lindqvist, Principal, Trading and Trade Execution, Itiviti. […] October 9, 2018
Risk & Compliance Trading firms across the board are discovering that operational and regulatory requirements increasingly demand a consistent approach to connectivity, messaging and data management. To industrialize their response to these emerging requirements – to address the challenges in a streamlined, consistent and scalable way – firms need to put in place a centralized connectivity and messaging […] September 25, 2018
Risk & Compliance MiFID II marked a sea change in the approach to the handling of order, trade and transaction data. Rigorous new requirements around data capture, analysis, reporting and record-keeping made the communication of data a central theme in ensuring trading systems were MiFID II compliant, and connectivity – between external and internal systems, databases and processors […] August 14, 2018
By submitting this form, you acknowledge that data collected by us will be handled in accordance with our Privacy Notice.