Article published in FX-MM, June 2016.
Robert Powell, Global Head of Compliance at IPC Systems, explains why trading firms need to start preparing now for the fundamental changes to required record keeping contained in MiFID II despite the recently announced delay in its implementation.
Last year, the European Markets Authority (ESMA) provided its final view of the technical standards implied under MiFID II, which will alter the functionality of European financial markets by increasing their transparency, safety and resilience, as well as providing enhanced investor protection. Despite the European Council recently confirming a year’s delay, financial organisations would be wise to start preparing for this increased regulatory scrutiny.
In particular, the records-keeping section of the advice will instigate a great deal of change in the way that communication records are maintained in Europe. The big question is, how will this impact organisations’ trading communications in the future? Here are the five principle ways MiFID II regulations will impact financial organisations, once they’re enacted in 2018.