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:
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:
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.
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.