With MiFID II nine months into implementation since go live in Janaury 2018 and the systematic internaliser (SI) regime having become mandatory for all firms within its scope in early September, a panel of regulatory experts at A-Team Group’s recent RegTech Summit in London reviewed how the regulation is playing out and discussed how to achieve sustainable compliance.
The panel was moderated by Gouri Khatua, regulatory consultant at Grant Thornton. Panel members included Nicholas Philpott, head of market structure at Standard Chartered Bank; Martijn Groot, vice president of product management at Asset Control; Peter Moss, CEO at the SmartStream RDU; and Malavika Solanki, member of the management team at the Derivatives Service Bureau.
The conversation started with a review of the SI regime and the role of regtech in helping firms decide whether to be SIs in particular securities, and if they are or become SIs, operate effectively and efficiently. Talking more broadly about MiFID II, the panel noted ongoing reference data challenges in providing pre- and post-trade transparency, and in meeting the data management requirements of best execution reporting.
On a more positive note, panel members remarked on how firms that are MiFID II compliant are beginning to look at opportunities to exploit data gathered to generate value for the business, and how they have used implementation to make internal improvements, such as applying common standards across global locations, which has proved particularly beneficial in achieving the requirements of best execution under MiFID II.
At an industry level, the panel said MiFID II has driven more structure into the market, presented potential for greater harmonisation of regulations across Europe and the US, and indicated how the future of regulation may play out, with firms sending well-structured and complete data to regulators and regulators making better use of the data.