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Editor, The TRADE Derivatives
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SARFRAZ THIND, DAN BARNES,
JOE CLARK, PAUL YAU
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Research & Operations
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Majority of buy-side firms
at risk of missing MiFID II
The above headline comes courtesy of a story we published on thetradenews.com. The story it preceded claimed that a whopping 90% of asset managers believed they were either at ‘high’ or ‘medium’
risk of non-compliance with MiFID II.
Any guesses what date this was published?
In all honesty it could have been at any time in the past three years and still
rung true, however this particular survey was conducted in June 2017. That’s
just six months before one of the largest and most complex set of regulations
in financial markets history comes into force.
It isn’t a case of the buy-side kicking the can down the road here. I can attest
to that given the number of attendees we’ve seen at events of ours over the
past two years – covering specific aspects of the regulation such as systematic
internalisers, unbundling or best execution. There is a clear desire to be ready.
Our readers constantly tell us that MiFID II preparation is at the forefront
of their daily tasks now. So much so, that many head traders claim they
barely trade anymore, to a point where some have given up their Bloomberg
terminals. Much of their time is now taken up with complying with new
rules, along with ensuring their trading strategies are evolving to cope with
Millions of pounds, dollars and euros have been poured into understanding and complying with MiFID II, but this barely scratches the surface and
resources are scarce. A JWG survey found that half of buy-side firms have a
team of less than five people tackling the behemoth regulation.
There are 1.4 million paragraphs within the MiFID II text - with interpretations unclear in many of these sections - so coming to terms with it all armed
with a small team and limited budget has just been too greater task.
That’s why we’ve pulled together our best content around MiFID II for this
handbook. It’s a chance to catch up on the indepth analysis, bitesize explanations and latest updates on each segment of the mammoth regulation.
It’s getting nearer and nearer to crunch time on 3 January, so given that
you’re likely in the bracket of the 90% of firms still unprepared, we hope that
this can be your go-to guide when putting those final touches together in your
MiFID II preparation.
And don’t worry, we won’t stop here. You can expect plenty more support
and guides in 2018 as we continue to host events, compile indepth features
and release handbooks like these to help you every step of the way.
But whether you’re reading this three months before
the deadline, one week or even on 3 January
itself - best of luck.