Editor's picks: Developments in MiFID II

By Alex Hammond | 7 July 2017

1. Making wealth managers ready as the MiFID II deadline approaches

Rodney Taylor, Business Development Director, Profile Software

The regulators have been clear in communicating the instruction that they expect best efforts to be made to comply with the fast approaching 3rd January 2018 deadline for MiFID II. Whilst an army of consultants have spent months explaining the challenges and interpreting the regulation, now is the time to move to the next phase if you have not already done so. For many wealth managers two years of work needs to be squeezed into the next six months. With such a tight deadline it is inevitable that choosing the right technology will be key to achieving the best outcome.

2. How MiFID II became political

Ollie Cadman, Head of Product & Strategy, EMEA, Vela Trading Technologies

In March 2017, Vela hosted an executive roundtable in London on the cross-asset challenges of MiFID II. In the this event report, we discuss how buy-side, sell-side, and market operator attendees were all keenly aware that large political and secular decisions could have a considerable effect on the impact that MiFID II will have upon their businesses. Consequently, investment firms need to consider these dynamics when assessing the impact of MiFID II upon their firms.

3. INDATA President: How regulations like MIFID II drives innovation in asset management

Alara Basul, Reporter, bobsguide

INDATA is a leading industry provider of software, technology and services for buy-side firms. The company’s portfolio includes asset managers and boutique investment firms, varying in assets under management  from $1bn to over $100bn across a variety of asset classes.

bobsguide sat down with Dave Csiki to discuss the asset management industry, implications of MiFID II, and how the financial services industry will be affected.

4.  MiFID II: How the cloud can be used for compliance around customer records

Drew Nielsen,Chief Trust Officer, Druva

On the 3rd January 2018, MiFID II (the second Markets in Financial Instruments Directive) will come into effect. It stipulates that anyone involved in the advice chain for an intended trade must record and retain all records of interaction for a minimum of five years. With the official deadline for compliance less than a year away how can you best prepare for this?
 
While some interactions with customers might be in person, the majority will be over electronic channels and mainly email. With the adoption of cloud-based services such as Office 365 and G Suite, messages have to be protected whether they are sent from a phone, laptop or standard PC. However, there is a gap in record retention strategies that many firms are not aware of. Many teams will rely on their cloud app provider of choice to keep copies of all their messages, but in most cases these services don’t provide full disaster recovery or archiving facilities. Without that proper backup strategy in place, messages could be lost and you risk failing your compliance requirements.
 

5. MiFID II: Meeting voice and archiving requirements

Robert Powell, Director of Compliance, IPC Systems

With MiFID II implementation high on financial firms’ agenda, there is going to be a major change in the way that trading communications are recorded and stored. Both mobile and electronic trading communications have increased significantly over the last few years, which is reflected in the new rules that extend the scope of communication recording and surveillance to include all types of interactions, including text, IM, email, mobile, and social media. This is an ever-growing challenge for financial firms who must capture data from all their regulated users involved in pre-, during and post-trade activities and include communications from far beyond the trader’s turret.