Last week we had different heads of market structure, compliance, and front office together for our regulation MiFID II breakfast. One of the many themes that was discussed was Best Execution, relevant because we had FCA representation and, whilst the Best Execution Thematic Review was published more than a year ago, it is still fresh in our minds.
What the regulators discovered in that case was a disparity of ways that banks were doing their best execution checks. The thematic review referred to the lack of standards across the industry and the fact that some banks felt like some of their activities were ‘out of scope’ and therefore excluded from the regime. It also reminded banks that a failure to obtain Best Execution is a problem that needs more focus from management, not just compliance and traders.
However, this new management focus and change of culture does not just apply to Best Execution. The event was oversubscribed and many heads of business attended, confirming that the regulators have now successfully gained the attention of upper management. Firms are more than ever conscious that there is a need to improve their current systems and controls to get ready for the implementation of future policy change. The uncertainty now is how to go about it.
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
Risk & Compliance Roughly six months after the introduction of MiFID II, Johannes Frey-Skött – VP Apps Engineering, Itiviti – talks to The TRADE about the short-term impact of the regulation on European market players, looking at both the positive and negative effects witnessed so far. He also outlines current pain points in MiFID II compliance and the […] July 17, 2018
Risk & Compliance With the pressure of initial implementation now a distant memory, MiFID II-regulated firms are turning their attention to the real work required to create sustainable long-term solutions. For many, the race to meet the January 3 deadline meant implementing temporary compliance processes that were far from perfect. Unless updated and improved, these could lead to […] July 10, 2018
Risk & Compliance What happens when one of the top 10 active brokers in Canada is confronted with: Stringent risk control requirements for electronic trading Time-to-market imperative to supersede TMX’ monitoring service termination Need to consolidate 14 internal trading platforms into a central gateway for enterprise-level risk management Optimization of latency and access speed for client connectivity Download […] June 26, 2018
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