The original Markets in Financial Instruments Directive (MiFID) led to a major shift in the cash equity markets. It sought to remove barriers to cross-border financial services within Europe for a safer, more transparent and evenly balanced marketplace as a whole.
Extending these transparency requirements, MiFID II will have an even more pronounced impact across the landscape. It will affect everyone engaged in the dealing and processing of financial instruments, from business and operating models, systems and data, to data, people and processes.
The high level goals of MiFID II are:
Increased transparency of markets
A shift in trading towards more structured marketplaces
Lower cost market data
Improved best execution
Orderly trading behaviour within markets
More explicit costs of trading and investing
MiFID II means significant transformation is vital for success.
Firms will need to start planning for the MiFID II changes ahead of the finalisation of the EU implementing legislation and the subsequent changes. MiFID II is a wide-ranging piece of legislation and, depending on your business model, could affect a wide range of your firm’s functions – from trading, transaction reporting and client services to IT and HR systems.
At TGL, we have the content, technology, experience and expertise to help you meet the challenge that this transformation poses, as well as take advantage of the market opportunities and potential for competitive advantage that the regulation undoubtedly offers.
It’s important to note that, while this directive is driven by European regulators, MiFID II will reach far out into the global financial industry, impacting all financial organizations that deal with the European markets.