MiFID II will introduce many information technology challenges.
Systems will be required to record greater levels of data granularity to implement specific elements of the regulation, e.g. identifying clients correctly in transaction reports and disclosing costs and charges.
And, MiFID II necessitates more information/data sharing amongst your in-house products across all business functions.
Order Management solutions are required to capture and record the additional information required to meet record keeping and transaction reporting obligations, e.g. clock synchronization, trading capacity, identity information.
MiFID II Will Impact your Firm’s Policies and Procedures
This is an example of what policies and procedures MiFID is going to impact on in every company.
- Product Governance and Distribution.
- Best Execution policy required for a wider range of financial instruments.
- Evaluation of clients to ensure correct classification.
- Period suitability monitoring.
It’s time to stop thinking about MiFID II; it’s time to take ACTION.