About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Perseus Acknowledges MiFID II Time Synchronisation Standards as Fair and Reasonable

Subscribe to our newsletter

Changes made to recommendations on time synchronisation in the European Securities and Markets Authority’s (ESMA) latest technical standards for MiFID II have been welcomed by Perseus, a provider of managed services including PrecisionSync time services, and recognised as being fair and reasonable. While previous ESMA recommendations suggested nanosecond clock synchronisation for electronic trading, the standards published late last month settle on 100 microseconds for electronic trading and 1 millisecond for voice trading.

Jock Percy, founder and CEO of Perseus, explains: “We were concerned that while ESMA’s initial time synchronisation standard was achievable from a technology standpoint it was commercially too aggressive as the cost of achieving the standard would be too high. We made submissions to ESMA on time synchronisation and the outcome in the latest technical standards is good, fair and reasonable.”

With MiFID II dedicated to market transparency, clock synchronisation is important to understanding what has happened in an unusual trading scenario. Percy says: “Trying to reconstruct a trading period when trading software is clocked incorrectly is very difficult. If all parties to a trade, including an exchange, are synchronised with one time source and the accuracy level is acceptable, reconstruction is easier and there should be less settlement problems and disputes.”

ESMA’s final MiFID II rules on time synchronisation will have a knock-on effect outside Europe, but they could also form the basis of the US Financial Industry Regulatory Authority’s (Finra) final decision on time synchronisation. Finra is contemplating time synchronisation within 50 microseconds for electronic trading, but could well follow ESMA’s recommendations once they have been ratified by the European Parliament. This would provide uniformity across the US and Europe, and reduce the complexity of resolving global trading challenges.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Managing Non-Financial Misconduct Under SMCR

Non-financial misconduct – encompassing behaviours such as bullying, sexual harassment, and discrimination is a key focus of the Senior Managers and Certification Regime (SMCR). The Financial Conduct Authority (FCA) has underscored that such misconduct is not only unethical but also poses significant risks to a firm’s culture and operational integrity. Recognizing the profound impact on...

BLOG

What to Expect at A-Team Group’s AI in Capital Markets Summit – New York, June 26, 2025

On June 26th, the A-Team Group brings its AI in Capital Markets Summit to New York City for the first time. The event will be held at @Ease on Third Avenue for a packed day of strategy, insight, and implementation. As artificial intelligence matures from early-stage experimentation to enterprise-wide deployment, capital markets firms face a...

EVENT

AI in Data Management Summit New York City

Following the success of the 15th Data Management Summit NYC, A-Team Group are excited to announce our new event: AI in Data Management Summit NYC!

GUIDE

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...