MiFID II is not just a compliance exercise. There are major business implications that could bring technology opportunities and competitive advantage for those who start to plan in advance. It is therefore important to stay up to date, and Horizon’s white paper on what these new opportunities might be aims to bring you the latest news on this major regulation change.
An excerpt from the white paper:
MiFID was replaced by a second Directive, in effect since January 2018, called MiFID II and MIFIR (Regulation on Markets in Financial Instruments, 2014/65/EU) resulting from a review of MiFID and events which occurred during the financial crisis of 2008 – presumably unforeseen.
[…] Changes to trade and transaction reporting processes have proven to be one of the most contentious and complicated parts of the new regulatory regime, requiring firms to process vast quantities of new data, and establish and maintain relationships which had previously not existed to ensure reporting runs smoothly.
With the benefit of some hindsight, has MiFID produced the desired effect? And have other effects emerged? Investment Europe suggests that as at May 2019, many AMs had not found an accurate way to display implicit costs for “highly complicated trades” and they simultaneously “face a race against time to deliver fully transparent transaction cost reports”. Accessible solutions are available, however and may even present opportunities.
