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

A-Team Insight Blogs

Everything You Need to Know About MiFID II

The deadline for MiFID II compliance has been delayed to January 2018, but it remains tight with firms continuing to implement projects that satisfy the directive’s rules on issues including regulated trading platforms, algo testing, high frequency trading and surveillance.

There is also work to be done on record-keeping, voice recording, and trade reconstruction. And there are new definitions and rules around systemic internalises, best execution, enhanced quality, format and consolidation of market data, time-stamping of transactions, a double volume cap aimed at limiting the use of dark pools and use of a negotiated trade waiver.

For many trading firms, MiFID II is a monster that is difficult to manage. Despite the publication of Level I legal texts for MiFID II and Markets in Financial Instruments Regulation (MiFIR) in June 2014, the late publication of Regulatory and Implementing Technical Standards by the European Securities and Markets Authority (ESMA) caused uncertainty around MiFID II implementation and, for some firms, a reluctance to invest in projects.

This problem was partially resolved in September 2015 when ESMA produced a final report on Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS), although many standards have continued to shuttle between ESMA and the European Commission before being agreed. That said, Level 2 measures, essentially binding technical standards, and Level 3 measures, guidelines and recommendations, should be finalised soon, giving firms clarity and a firmer foundation on which to implement MiFID II.

It’s been a tough journey and it isn’t over yet, so what sort of progress are firms making, how are they tackling the challenges presented by MiFID II implementation and what approaches are they taking to compliance?

Related content

WEBINAR

Recorded Webinar: Managing the transaction reporting landscape post Brexit: MiFID II, SFTR, EMIR

The transaction reporting landscape has, for many financial institutions, expanded considerably in size since the end of the UK’s Brexit transition period on 31 December 2020 and the resulting need for double reporting of some transactions to both EU and UK authorities. It has also changed dramatically following the UK government’s failure to reach equivalence...

BLOG

IPSX Creates Integrated Technology Framework Ahead of First Admission

UK-based IPSX, which describes itself as the world’s first regulated stock exchange dedicated to real estate assets, has pulled together an integrated technology environment and a set of standardised data workflows ahead of its first ‘Intention to Float’ (ITF) on its IPSX Wholesale market, scheduled for next month. IPSX has been working with a plethora...

EVENT

LIVE Briefing: ESG Data Management – A Strategic Imperative

This breakfast briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Regulatory Data Handbook – Fourth Edition

Need to know all the essentials about the regulations impacting data management? Welcome to the Fourth edition of our A-Team Regulatory Data Handbook which provides all the essentials about regulations impacting data management. A-Team’s series of Regulatory Data Handbooks are a great way to see at-a-glance: All the regulations that are impacting data management today A...