Financial venues and exchanges have less than six months to prepare for MiFID II, which will come into force in January 2018. Ahead of the deadline, SIX Financial Information has unveiled a new data platform compliant with the new regime, catering to wealth and asset managers, banks, and a range of other market participants.
MiFID II is poised to dramatically reshape the financial services industry – in addition to a number of sweeping new obligations for venues, the regime itself will aim to foster more transparent execution and reporting techniques. In light of this shift, SIX has been in close consultation with other industry players, ultimately rolling out the new platform that will facilitate the improved exchange of regulatory data and documentation.
The emphasis on regulatory data and documentation mirrors that of other groups from around the industry ahead of the MiFID II deadline. Given the global latitude of MiFID II and redoubled focus on investor protection, many groups are fervently working on getting their systems up to date and compliant by January. In addition to exchange data, this also includes disclosing new information about the content and sales of retail investment products.
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New platform, same preparation
Moreover, the platform also builds on SIX’s existing MiFID II data infrastructure as well as PRIIP document generation and distribution services. These efforts have been in the works for at least a year, with SIX making strides to meet the MiFID II deadline. The new data platform will be important for several groups, including relationship managers and others.
As such, these individuals will be able to benefit from using the interface to interact with the product issuers whose products they sell, making sure that they offer products that match client profiles, and then to report back on who they sold to. Furthermore, SIX’s platform also enables the automation of internal processes for banks, including two-way connections and feedback loops between the buy-side and sell-side.
The platform also satisfies investor protection, a key provision of MiFID II, given that it can allow information and documents to be requested on demand at the point of sale, rather than potentially multiple times each day for thousands of products.
Philip Lynch, Head of Markets, Products & Strategy SIX Financial Information, commented: “With 87 years of experience in financial information services, we specialise in helping firms understand and manage data for regulations. We have taken that experience and collaborated with the industry to develop this mutualised response to the huge challenge that firms will face in managing and exchanging regulatory data and documentation.”
“This platform, with its ‘ready-to-consume’ data, will help banks automate and scale their operations, reducing costs and increasing the speed of compliance. Instead of focusing on each regulation individually, clients can depend on SIX to support regulatory compliance for current and future regulations in tandem,” he added.