This year, the second Markets in Financial Instruments Directive (MiFID II) came into force in January with firms being given a year, until January 2018, to comply with the new regulations. As many as 64% of firms believe they will not be ready to meet the upcoming deadline due to the complicated nature of the changes and the rising costs involved in compliance.
The good news – Algomi can help you meet your new obligations and get you ready to face the future.
MiFID II introduces new supervisory powers in conjunction with the European Securities and Market Authority. This allows for greater scope of investigations that occur both pre-trade and post-trade.
Reporting is the key to demonstrating transparency and identifying potential conflicts of interest. Across the board, MiFID II requires new and existing players to adopt more robust reporting procedures.
Risk management and transparency mean greater investor protection. In the past, commission-led investment advice was an invitation to follow the greatest fee rather than the soundest option for clients. MiFID II introduces strict guidelines to govern the disclosure of fee structures and veracity of investment recommendations.
How can Algomi help?
Algomi News reports developments in the industry including an interesting overview of the MiFID II roll out and its effects.
Algomi themselves are ahead of the game, however, and tools to help you comply with MiFID II are already built into their leading software programs –Honeycomb and Synchronicity.
With Synchronicity on the sell-side and Honeycomb on the buy-side, Algomi has got you covered. Each program creates a record of your search for a trade and displays a clear evidence trail of the steps that led you there. You can follow your instincts and the software will record the trail you take so it can be explained, if required, in the future. This is in step with the ethos of the new MiFID II regulations. Fortunately, it also creates a useful trail of breadcrumbs for you so you can backtrack, understand your movements and learn from them for the future.
Regulations make the market safer for everyone and, once you integrate compliance into your processes, you will benefit from the security you have and can offer your clients.
Watch this space for more Algomi news on MiFID II developments.