Since the beginning of the year there have been numerous blogs and articles about the looming deadline for MiFID II. One of the key reasons that companies have been delaying their implementation strategy is due to a ‘wait-and-see approach’ in regards to the finalisation of the regulation.
The FCA published it’s near final rules for MiFID II at the end of March with the final version due towards the end of Q2. The good news is that the Transaction Reporting element has remained unchanged which should be viewed as an encouragement for companies to start the implementation process.
While it is true that the 3 January 2018 is now less than nine months away, there is still enough time to get systems and processes in place to meet the target date but you will need to hurry! Of all of the options available, building a solution in-house is now not likely to succeed in this short period. Good practice dictates that at least 3-5 months of testing will be required to ensure that all of the technical components, inter-system connectivity and processes work flawlessly.
The FCA has already stated that it will look unfavourably on over-reporting and will conduct thorough audits in future to ensure that companies not only comply with the MiFID II regulations but also understand the underlying processes. This means that any solution should have full transparency, the capability to apply the various filtering and reporting rules in real time, as well as perform the reconciliations required under RTS8 and RTS22.
By buying an off-the-shelf, regulation compliant product you will have ability to implement your MiFID II solution in a matter of a short space of time. AutoRek provides a flexible tool that can be plugged into your existing infrastructure and allows users (not technologists) to design and apply the rules themselves.
Our robust, automated transaction data control regime helps investments firms ensure readiness for the significant changes MiFID II/MiFIR will have in respect of Transaction Reporting requirements.
We adopt a rigorous approach to Transaction Reporting, from data extraction though to the management control reporting, report submission to the FCA’s Approved Reporting Mechanism (ARM) and reconciliations.
Download a complimentary copy of our ‘Transaction Reporting – MiFID II and MiFIR Data Challenges’ whitepaper to find out how to overcome manual and complex reporting processes.