MIFID II BUY SIDE COMPLIANCE
Buy side and the impact of change
Get valuable real-time data and research – at the right time.
Although some of these regulatory requirements will directly impact buy-side operations, others, such as transaction reporting, will present challenges for the sell-side and their ability to help you. This will require you to assume more responsibilities in order to comply with MiFID II obligations.
There are a number of key areas that will affect MiFID II compliance in buy-side firms.
The scope of the new buy side compliance is daunting. MiFID regulations will likely touch every part of your business, including:
- Investor protection – new internal and external compliance procedures will need to be followed in response to tighter controls on the management of clients and the products and services they may be sold
- Best execution – a new focus on securing best possible results for clients is enhanced by requirements to record performance and publish summarized data, while using tools and this new data to assess policies regularly
- Transparency – firms will need to determine whether responsibility for post-trade reporting can continue to be delegated or if they need to take on this task
- Trading in both non-equity and equity products – understanding how the additional transparency for non-equities will work when determining trading strategy, viewing market activity and the publishing requirements of real-time vs delayed. In equity trading, new controls on dark pool trading and broker crossing networks will require new strategies to trade effectively
- Research and unbundling – separating the cost of research from execution fees will require changes in the way firms assess, value and pay for research
- Transaction reporting – the extended instrument scope and increases in the number of reporting fields will make this more challenging
Comply and Compete with Confidence
We have a number of existing solutions that will be tailored to help buy-side firms comply with the MiFID II obligations summarized above.