Systematic Internalizers: Challenges and Opportunities in the MiFID II Era

By John D’Antona Jr. June 14, 2018, Traders Magazine MiFID II is intended to deliver better outcomes for end-investors across Europe, by increasing transparency, consumer protection and competition, while reducing cost, risk and conflicts of interest. To achieve these...

Big Investors Don’t Want Wall Street Analysts Snooping on Them

By Telis Demos June 14, 2018, The Wall Street Journal Some of the world’s biggest investors have a message for Wall Street: Stop reading over our shoulder. Banks, under pressure to find new ways to boost revenue in their...

Questions Remain on Scope of MiFID Extraterritoriality

By Samuel Wilkes June 13, 2018, Risk Global banking groups are still grappling with uncertainties surrounding the application of new European Union financial market rules on operations located outside the E.U., a conference in London has heard. “We haven’t...

Industry Split Over Running of New Derivatives IDs

By Luke Clancy June 12, 2018, Risk The International Swaps and Derivatives Association is facing a pushback against its plan to become the brains trust behind a global scheme that could drive changes to the way Europe classifies products...

MiFID II’s Reference Data Problems Drag On

By Jamie Hyman June 11, 2018, Waters Technology In the months leading up to the compliance deadline for the revised Markets in Financial Instruments Directive (MiFID II) at the start of this year, an oft-repeated sentiment was that January...

Bank Execs Call for Regulatory Harmonization and Cross-Border Clarity

By Josephine Gallagher June 12, 2018, Waters Technology Nearly six months on from the implementation of the revised Markets in Financial Instruments Directive II (MiFID II), banking experts remain concerned about cross-border implementation, regulatory ambiguity and the lack of...

Swinburne Warns on Equivalence

By Shanny Basar June 12, 2018, Markets Media Dr. Kay Swinburne, MEP, vice chairman of the economic and monetary affairs committee at the European Parliament, has warned that the United Kingdom cannot rely on equivalence for mutual access to...

FCA’s Bailey Promises Action on PRIIPs and MiFID II Failings

By Mike Sheen June 12, 2018, Professional Adviser FCA chief executive Andrew Bailey has said the regulator will take action to address the unintended negative implications of European regulatory standards PRIIPS and MiFID II as early as next month....

Can Platforms Keep Up with Product Governance Rules?

By Holly Black June 11, 2018, Money Marketing New regulations are causing confusion over which parts of the advice chain are responsible for checking products are appropriate for particular clients. The Product Intervention and Product Governance Sourcebook, or PROD,...

MiFID II Unbundling to Go Global

By Kristen McGachey June 12, 2018, Portfolio Adviser The U.S. and Asia could be subject to similar research unbundling rules as Europe under MiFID II by 2022, a survey by a research platform provider has shown. A report published...

Firms Continue to Turn to Cloud-Based Solutions to Comply with MiFID II Rules

By Vikas Srivastava, Integral Development Corp. Originally published on the TabbFORUM For many firms, the RTS-28 requirement and the upcoming RTS-27 reports are proving to be a headache. Collecting complex data on this large of a scale and on...

EC Official Offers Hope to Prop Traders on Capital Rules

By Philip Alexander June 11, 2018, Risk A European Commission official has extended a possible olive branch to beleaguered principal trading firms, who are worried proposed capital requirements will drive them out of the European Union altogether. The requirements...

ESMA Suspends 932 Stocks from June for MiFID II DVC Breaches

By Hayley McDowell June 8, 2018, The Trade A total of 932 instruments have been suspended from trading as of June 7 by the E.U. markets watchdog for breaching thresholds under MiFID II. In its latest double volume cap...

MiFID II Fixed Income Data Proves Challenging

By Shanny Basar June 7, 2018, Markets Media Fixed income data will be one of the biggest challenges over the coming months as new regulations have led to increased fragmentation and higher fees, while trading revenues are falling. MiFID...

MiFID II & Packages: Firms Still Diverging on Transparency

By Lizzie Meager June 7, 2018, Practice Insight from IFLR Packaged transactions are still causing confusion in derivatives markets almost six months on from MiFID II implementation. On an ISDA call with the industry yesterday it became clear that...

Buy-Side Lacks “Meaningful Testing” of MiFID II Records – Experts

By Louisa Chender June 7, 2018, Global Investor Group Although the buy-side has generally implemented recordkeeping requirements under MiFID II, a lack of “meaningful testing” of the new systems could leave firms unable to fully comply with regulators’ data...

French ‘Bombshell’ Would Gut MiFIR Equivalence, Say Lawyers

By Samuel Wilkes June 4, 2018, Risk The French delegation at the Council of the European Union has put forward proposals that effectively scrap the E.U.’s equivalence regime for third-country firms providing cross-border services and activities into the bloc,...

Banks and Brokers Suffer ‘Dramatic’ Fall in Commissions

By Attracta Mooney and Hannah Murphy June 2, 2018, Financial Times Investment banks and brokers across Europe have suffered a “dramatic” fall in the fees asset managers pay them to buy and sell shares in a sign of how...

ESMA Clampdown Puts Pressure on MiFID Data Services

By Sam Wilkes and Duncan Wood May 30, 2018, Risk Data services that were launched in response to Europe’s new trading and transparency regime face a potentially costly overhaul, after the European Securities and Markets Authority concluded many were...

ISINs Must Be Fit for Regulatory Requirements – DSB

By Louisa Chender June 1, 2018, Global Investor Group Although clarification is needed about some aspects of the ISIN, the existing form the identifier ensures firms are compliant with MiFID II requirements, according to the Derivatives Service Bureau (DSB)....

Competition Heats up in a Very British Corner of Investment Banking

By Paul Clarke May 31, 2018, Financial News For a sector associated with staid British traditions, there’s a renewed sense of American-style sharp-elbowed competition among investment banks’ corporate broking teams. Larger investment banks are circling smaller rivals as the...

MiFID II Unbundling Turns Asset Managers to AI Research

By Sharon Kimathi May 31, 2018, Practice Insight from IFLR Buy-side firms reveal that MiFID II’s forced research unbundling has led them towards automation and artificial intelligence (AI) over traditional large departments of analysts. “In terms of the customers,...

Wealth and Fund Firms Battle to Keep Costs Under Control

By Yoosof Farah June 1, 2018, Wealth Manager Wealth and asset managers are now just as concerned about cutting costs as they are about regulation as the dust begins to settle on MiFID II and GDPR, according to a survey...

E.U. to Review MiFID II if Brexit Talks Falter

By Lucy McNulty and Samuel Agini May 29, 2018, Financial News Europe’s leading financial regulator has said it will review the vast set of trading and investment rules that came into force this year if Brexit negotiations fail, sparking...

ESMA Publishes Final Report on MiFID II Suitability Requirements

By Jenna Lomax May 29, 2018, Securities Lending Times The European Securities and Markets Authority (ESMA) has published its final report on guidelines on the second Markets in Financial Instruments Directive (MiFID II) suitability requirements. According to ESMA, the...

LEI Adoption Will Facilitate Technological Evolution – GLEIF

By Louisa Chender May 29, 2018, Global Investor Group Although the legal entity identifier (LEI) was introduced primarily to address transparency issues, widespread adoption will facilitate further developments in technology, an expert told FOW. According to Stephan Wolf, chief...

Traders Not Convinced of Shift to Lit Markets Under MiFID II

By Hayley McDowell May 29, 2018, The Trade Just one in four traders are confident that dark liquidity will shift to lit markets under the MiFID II regime in Europe, according to a survey carried out by SIX Group....

Wall Street Clients Are Balking at Paying for Research, but They Like Attending Conferences, JP Morgan Says

By Hugh Son May 29, 2018, CNBC Pity the Wall Street analyst. The ranks of investment-bank research analysts have been shrinking for years amid new regulations and subdued trading markets. Now European rules that unbundle research and trade execution...

FCA IPO Rules & MiFID Research: Sell-Side Weighs Options

By Sharon Kimathi May 24, 2018, Practice Insight from IFLR Market participants are worried about the cost of research after the U.K.’s new initial public offering (IPO) listing rules are enforced in July. Sources believe the new framework will...

Buy-Side Using Compression Tools to Create, Not Destroy

By Lukas Becker May 24, 2018, Risk Designed to wipe out trades and reduce risk, trading platforms’ compression tools are increasingly being used to do the opposite, an accidental innovation that has become the primary way for some buy-side...