No one doubts that MiFID II will have a major impact on investment management in the European Union, from changes in venue requirements to execution data tracking and post-transaction transparency. However, there’s a lot of uncertainty as to how Buy-Side firms should prepare for these changes. And with the delay in announcing the directive’s Technical Specifications until September, this uncertainty persists.
Charles River recently surveyed EMEA clients to learn their concerns and readiness for MiFID II. We found that the vast majority of clients are being proactive in addressing the regulation (read here). While firms are still unclear about many aspects of MiFID II, asset managers are firmly convinced of one future result – they must prepare to take on more work.
Key findings include:
- Over two-thirds believe asset managers will have to handle reporting currently conducted by the sell-side
- More than 80% are interested in having their OEMS capture the data required for reports and audits
- 68% have not yet defined the audit requirements for new workflows, and the required output for captured data
- 75% do not know whether they will register as an Multilateral Trading Facility to enable internal crossing
- Additional areas of concern include requirements on research payment and commission unbundling, how to document best execution, and monitoring of dark pool caps
As the countdown to MiFID II continues, Charles River will analyze these and other aspects of MiFID II and explore the implications for clients. We encourage all clients to prepare now for significant changes:
- Participate in our client working group – meet regularly, gain updates, provide feedback across jurisdictions, & validate planned enhancements
- Start planning for upgrades now – review budgets, hardware/environments & internal resources
- Take advantage of our managed services – learn about our front-/middle-office solution delivered as a hosted service
Find Out More about Charles River’s MiFID ll solution