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The right compliance technology can save banks billions even MiFID II kicks in 

February 22, 2016

Simon Richards, FTSE Global Markets

Unsurprisingly, the European Commission’s proposal to allow a year’s extension on the deadline for MiFID II compliance has been made official. The date has been delayed until January 3rd, 2018 and while many may heave a sigh of relief that they have been given more time to implement the major IT operational changes required, such as transaction reporting and pre- and post-trade transparency, the fact remains that the changes to these dates make one thing abundantly clear: in order to keep pace with the rate of change and ensure never being caught on the hop, the clever money will look to become more strategic in its response and move away from short term tactics. 

The MiFID II revisions in autumn 2015, the uncertainty around when the changes would come into play and Dodd Frank Title VII reforms reflect the fact that regulations are going to be regularly reviewed and are likely to change often and rapidly with implementation dates moved back, or even forward if necessary. Banks and trading firms need to be prepared for regulatory change at the point of announcement because if they are compliant-ready ahead of time, then they will be able to manoeuvre and adapt in order to stay live in the market.

Being compliant-ready is not the end of the story. The technology systems that help ensure transparency and transaction reporting are not cheap so there must be clear return on investment that kicks-in long before the compliance regulators come knocking on the door. The benefit of knowing your bank is compliant and will never be hit with multi-billion dollar fines speaks for itself but while waiting for the regulations to become official, money can be made out of the right kind of compliance technology. Read more

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