Data In Harmony
  • Data
    • Financial Data
    • Alternative Data
  • Consulting
    • How We Help
    • Offshore Data Support
    • Monetize Your Data
  • Tools
  • Case Studies
    • Case Studies List
    • #1 - Universe Reconstruction
    • #2 - Reference Data
    • #3 - Corporate Actions
  • About DIH
    • DIH's Story
    • Partners
    • Careers
    • DIH Blog
    • Privacy Policy
    • Terms of Use
  • Contact

Data insights we think will interest you...

MiFID II Will Test Firms’ Reference Data. Are You Ready?

9/14/2017

0 Comments

 
​As we’re sure you know, the Markets in Financial Instruments Directive (MiFID) was implemented by European policymakers after the 2008 financial crisis. The latest update, MiFID II, goes into effect on January 3, 2018, and covers a wide array of regulatory categories.  

What you may not realize (yet) is it will be crucial to have complete and accurate reference data in order to comply. 

Is YOUR reference data ready?  Here are just a few of the new MiFID II regulations that will test your reference data…

​​You must track EVERYTHING about an order

The data required to comply with MiFID II trade reporting includes:
  • Order receipt
  • Order transmission if order is transmitted and executed
  • Execution or cancellation of order on behalf of clients
  • Conclusion of trade when dealing on own account
  • Storage of relevant internal communication

In addition to price, volume, trading venue and time of the trade, you must also accurately identify the exact instrument in question.  This means accurate reference data (e.g. ticker symbol, ISIN, SEDOL, etc.) is required from the moment the order originates to cancellation or post-execution for all asset classes.

So for example, you need quality reference data for each of the following to comply with MiFID II:
  1. All internal communication relevant to a transaction must be monitored and archived, even when an order is modified or ultimately cancelled.
  2. You must record and store all voice and text communications relevant to a trade for a minimum of five years.  
  3. When requested, a firm must be able to reconstruct all internal communication related to a transaction.
  4. After a trade has been executed, there are even more “transaction reporting” requirements: regulators have increased the number of reportable data points from 23 to 65.  

​What You Need to Know

A lot of money has already been spent by firms getting ready for MiFID II, and more will be spent after it goes into effect on January 3, 2018.  Having complete and accurate reference data is going to be key to comply with MiFID II, so if you haven’t already reviewed your reference data, the clock is ticking.

Learn more about DIH’s reference data solutions. 
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    Tom Myers is the founder of Data In Harmony (DIH), a data consultant and provider. DIH help firms find the data they need, validate & clean data, integrate data, and monetize their data.  DIH also provides a wide variety of financial and alternative data, as well as data engineering tools.

    Archives

    November 2020
    October 2020
    August 2020
    June 2020
    April 2020
    September 2017
    August 2017
    July 2017

    Categories

    All

    RSS Feed

Home   |   Data   |   ​Consulting   |   Tools   |   ​Contact
© DIH Solutions, LLC 2016-2020. All rights reserved.  Privacy Policy & Terms of Use. 
  • Data
    • Financial Data
    • Alternative Data
  • Consulting
    • How We Help
    • Offshore Data Support
    • Monetize Your Data
  • Tools
  • Case Studies
    • Case Studies List
    • #1 - Universe Reconstruction
    • #2 - Reference Data
    • #3 - Corporate Actions
  • About DIH
    • DIH's Story
    • Partners
    • Careers
    • DIH Blog
    • Privacy Policy
    • Terms of Use
  • Contact