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MiFID II & MiFIR

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MiFID II in the regulatory Environment

With the directive and regulation for the markets with financial instruments - in short, financial market directive/regulation - the framework for financial transactions will be applied throughout Europe as of January 2018.
The regulatory framework is intended to further harmonize the European securities trading, eliminate the unwanted side effects of MiFID I and strengthen investor protection even further. At the same time, this new framework shouldn't be observed as an isolated topic, since there is a significant interaction with other regulatory issues - in particular EMIR, CRD IV and CRR, MAD, REMIT as well as SFTR and MMSR.  

Additionally, it is intended to enforce binding rules for the market access, transparency and marketplace requirements through the segregation into a guideline and a directive.

 

 

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The key statements

The five key statements regarding MiFID II / MiFIR can be classified into:

  • Investor protection
  • Market transparency
  • Market infrastructure
  • Data consolidation
  • Interventions

 

Important innovations
The key new features of MiFID II and MiFIR regarding the securities trading and the market structure pertain to the introduction of so-called Organised Trading Facilities (OTF), an enhanced transparency monitoring (for the pre and post-trade data) and the limitation of previously applied transparency exceptions, a trade pledge for equities and derivatives, a clearing requirement for exchange-traded derivatives, as well as regulations for the algorithmic trading and the high frequency trading (which in Germany is usually covered by the “High-frequency trading act" and the BaFIN RS 6/2013 regulation).

 

Sixteen action areas at a glance
Derived from the aforementioned key areas through interdependencies between the currently addressed regulatory topics, we have identified the following action areas for you and are able to appropriately address them through our range of solutions:

 

  1. Independent Consulting

  2. Pricing models and commissions 

  3. Conversation recording

  4. Documentation and transparency

  5. Execution Only

  6. Expansion of market structures

  7. Systematic internalisers

  8. Trading center duty

  9. Derivatives

  10. Pre and post trade transparency

  11. Best Execution

  12. Data consolidation

  13. Commodity derivatives market

  14. Reporting

  15. Investor protection

  16. Regulatory requirements & powers of the authorities

 

Postponement - implementation currently planned by January 1, 2018
Deviating from the original planning, the ESMA and the European Commission have granted financial institutions an additional year to conduct the implementation. Thus, the regulatory framework must therefore be implemented by January 1, 2018.
In addition, the Member States are also demanding a postponement for the implementation into national law, since this deadline will expire on July 3, 2016. At the same time, it is intended to establish a variable timeframe of nine months for the implementation into national law afterwards, depending on the finalization of the statutory act.

 

The postponement is demanded by financial institutions as well as other stakeholders due to the significant associated technical challenges, as well as some uncertainties in the reporting and transparency requirements area.

Your added value – Our comprehensive range of solutions from the initial concept all the way up to the implementation

targens will proficiently apply its professional expertise regarding the entire process chain within a bank, from the trading all the way up to the settlement including the overall bank management and reporting, with its specific technical IT know-how of the affected systems and full consideration of the existing IT architecture.

You would like our support for the implementation of MiFID II and MiFIR? Then feel free to contact us at any time - we're looking forward to hearing from you.

 

 

targens GmbH - Calwer StraÃ??e 33 - 70173 Stuttgart
Phone: +49 711 222 992-900 - Fax: +49 711 222 992-999