ADDRESSING IT INFRASTRUCTURE & DATA MANAGEMENT CHANGES
Demands for change
Putting data management plans in place: your strategic partner in MiFID II.
Before MiFID II comes into force, there will be substantial requirements imposed on banks that will result in significant demands for changes to IT infrastructure and data management.
New data sources
Aspects of MiFID II will create fundamental changes to market structure, which in turn will create new data sources like Approved Publication Arrangements (APAs) as well as formalise existing venues into MTFs or Organised Trading Facilities (OTFs).
There will be also be a dependency on new regulatory data which needs to be sourced and integrated into electronic platforms as well as front office desktops.
More data, more reports, published more often
All of the new data requirements are designed to help firms comply with MiFID II in all the big pillars: best execution, pre-trade transparency as a Systematic Internaliser, post-trade transparency and transaction reporting.
As part of that compliance, firms will need to publish a significant number of reports, both privately to regulators and more publically to the wider market.
They will have to capture a significant amount of data, format and enrich it, before publishing it to the right destination – and do so while meeting required deadlines.
Navigating these market data and infrastructure needs for MiFID can be broken down into the following topics:
- Real-time data – With a number of new data sources, firms will need to look at choosing what information will be useful, where to source it and how to integrate it.
- Reference data: product and client – There will be a broad set of new product data published by ESMA and national regulators. These new data points will be essential for electronic trading platforms as well as sales/trader desktops, so being able to reliably source and integrate data with existing data sets will be a key challenge. More comprehensive client and legal entity data will also be a key requirement.
- Regulatory reporting and transparency – Not only has the product scope of transparency and transaction reporting increased, with extra new data attributes thrown in for good measure, MiFID II is seeking new data points including instrument reference data to help with product definition and execution reports to provide evidence of compliance.
- Analytics – While transparency and reporting is a key pillar of MiFID II implementation, there is an expectation that firms should act on this data. Analytics will be essential in processing the huge amount of internal and external data that will be generated and captured in the post MiFID environment.
Thomson Reuters: a key partner for the new market model
We have a number of existing solutions that will be tailored to help sell-side firms comply with the MiFID II obligations summarized above. We have the content, the technology and the expertise to help you meet this challenge.