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.
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
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