The report explores the most challenging aspects for a bank in achieving compliance with MiFID II’s trade and transaction reporting mandates, specifically:
- the impact of the directive’s best execution mandates on the costs associated with trading;
- the creation of a new type of trading venue called an organised trading facility and the impact it will have on existing sellside systematic internaliser registrations;
- the impact of new mandates governing algorithmic trading;
- the impact of new rules designed to monitor the provision of direct market access services by banks; and
- the challenges posed by a currently inconsistent proposed regime for banks to synchronise the clocks that their trading systems use with the clocks used by trading venues for trade time-stamping purposes.
The report develops a series of best practices recommendations that banks can follow when attempting to comply with these MiFID II mandates that directly impact the profitability that can be derived from a sellside execution franchise.
