On 3 January 2018, Europe will see the update to the Markets in Financial Instrument Directive (MiFID II) and the accompanying Regulation (MiFIR) come into force. Focusing on core principles of the creation of fairer, safer and more effcient markets, this arguably is the broadest piece of financial industry legislation ever and has the potential to significantly change market structures. Now is the time to be selecting and integrating systematic solutions to prepare for this vast regulatory change.
MiFID II will call for a degree of transparency that is unprecedented — particularly for buy side firms. Whereas MiFID applied solely to equity markets, MiFID II extends the core principles into “non-equity products,” such as cash and derivative products in fixed income, FX and commodities.
For the first time, products like bonds and derivatives that trade over-the-counter will be subject to certain reporting requirements to create price transparency and supervisory oversight. New ‘on venue’ trading obligations will be introduced for certain products, but the obligation of trading venues to report on behalf of participants may see more products also move ‘on venue.’ The buy side will be forced to purchase FICC research products and ensure they are not being induced, similar to the unbundling of equity markets.
The bottom line: successfully navigating this complex new regulatory landscape will take a trusted partner who knows the lay of the land. Who you choose now and how you bring solutions online in the months ahead will go a long way to determine your success come January 2018.
In these pages we outline Bloomberg’s MiFID II offering and the deep regulatory and compliance expertise behind it. Bloomberg offers solutions across the entire MIFID II spectrum, and these capabilities are seamlessly integrated with Bloomberg’s order management systems TOMS, SSEOMS and AIM.
You can also visit MIFI<GO> on the Terminal to receive the latest updates on the regulation roll out and Bloomberg’s MiFID II solutions.
With over 30 years of experience providing news, data, analytics, trading and compliance solutions to the capital markets, Bloomberg is uniquely positioned as the trusted partner who can help you stay one step ahead of every curve. We look forward to working together to ensure your firm’s success.