Amid the regulatory requirements hitting banks, financial firms are especially interested in a new European regulation that will come into effect starting January 1, 2018. It’s Directive 2014/65/EU on markets in financial instruments – also known as Markets in Financial Instruments Directive II (MIFID II).
MIFID II affects all actors in the financial industry. On the one hand, it brings changes to the market structure, such as new rules about how to inform the market when selling a financial instrument, for example. It also means technological changes to make the markets more secure – changes that seek to create a better system and more effective consolidation of transaction data.
The directive mandates a move to faster publishing of post-trade transaction data to local competent authorities, reducing the time delay from three minutes to one minute. This move promises to require investment in underlying data architecture and will put pressure on ﬁrms’ abilities to retrieve supporting reference data from repositories quickly and accurately.
Under MiFID II, banks and financial firms must implement common data processes and data quality metrics, which will require adoption of data standards to ensure consistency of reporting across all regulated activities. They must also manage multiple identiﬁers, including industry standard Market Identiﬁer Codes (MIC) and the Global Legal Entity Identiﬁer (LEI).
Many banks and financial ﬁrms have many of the systems and data sets needed to cover all these bases in place. True, some may not be addressing some of the new areas MiFID II applies to. But with some homework during the design phase, and by partnering with a trusted business integration partner to ﬁll the gaps, ﬁrms should be able to meet the deadlines without panicking.
SEEBURGER Business Integration Suite (BIS) is the ideal platform for MIFID II compliance. BIS offers all of the above-noted MIFID II required technology capabilities in a “best-in-breed” (completely integrated architecture) operating environment that enables the investment manager to deploy, adapt, and support truly efficient MIFID II Solutions.
Find out how SEEBURGER can take your bank across the finish line to MIFID II compliance