The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Anyone for MiFID III?

By Steve Grob, Director of Group Strategy, Fidessa

I was chatting with the Reg folks here at Fidessa Towers yesterday and the spectre of MiFID III came up. Before you all jump off the window ledge, there is no official notion of this yet, but when will the regulators feel that their work really is done?

The direction of travel has been clear for a while – dismantle the current industry and replace it with something that is utilitarian, uniform and, above all, safe. At the heart of this is the regulator’s poster child ‘outcomes for end investors’ and making sure that their investment dollars are spent properly.

It seems, therefore, that the regulatory cross hairs are going to focus even more on the buy-side than the sell-side moving forwards. Once research has been unbundled and paid for explicitly, won’t that just raise the issue of brokers providing trading screens, FIX connectivity and other services to their buy-side clients that are not directly paid for? To make matters worse, the buy-side is fighting a fierce rear-guard action against passive investment, which means it is hardly in a position to pass any extra costs on to end investors. The net result will be less choice, as buy-side firms exit the business.

The real issue is trust – either I trust my supplier (Amazon, BMW, Ocado) and will keep using them, or I don’t and I won’t (VW, Samsung). Commercial reality is far better at making this happen than the increasingly forensic and globally inconsistent approach of regulators.

Related content

WEBINAR

Recorded Webinar: The evolution of market surveillance across sell-side and buy-side firms

Market surveillance is crucial, and in many cases a regulatory requirement, to ensuring orderly securities markets and sustaining confidence in trading. It can be breached and has become increasingly complex in the wake of the Covid pandemic, Brexit, and the emergence of new asset classes. This webinar will review the extent of market abuse in...

BLOG

Navigating the Post-Brexit Trading Landscape

By Mike O’Hara, A-Team Special Correspondent. It’s now almost four months since the UK exited the EU, and from a trading and market infrastructure perspective, a clearer picture of the post-Brexit landscape is starting to emerge, although there are still many uncertainties that lie ahead. How have market participants, venue operators and their supporting ecosystem...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that brings together an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...