We have continued to expand our suite of MiFID II compliance training courses, with courses designed to provide your organization with a clear and concise understanding of the regulatory framework mandated by the European Securities & Markets Authority (ESMA).
MiFID II is an expansive regulation in terms of its ambition, remit and the impact it will have on how financial markets operate and how its participants respond to the overarching compliance it demands. The purpose of this Directive is to bring uniformity to what is currently a diverse market place.
Trading Venues, Approved Reporting Mechanisms (ARMs), Organized Trading Facility (OTFs), Investment Firms and Sell Side firms will each have a significant reporting obligation, to both ESMA and to their local regulatory body, known as National Competent Authorities (NCAs). MiFID II is intended to reduce the risks associated with what has been seen historically as light regulation, and ensure investors are treated fairly.
How we can help
Our MiFID II compliance training suite clarifies the complexity of the legislation, and provides a concise view of what organizations should consider when approaching MiFID II compliance.
Some may argue that institutions should be fully aware of their obligations and already well on their way to having compliant processes in place. The truth is that many firms are struggling with what they believe their role will be in this new world of regulation.
Here are examples of some questions firms affected by MiFID II should be asking:
- Are you a Systematic Internaliser (SI)?
- Are you clear about the lines of demarcation between investment fees and research fees?
- Do you need to unbundle services to comply with the Directive, and have you considered the financial impact of doing so?
- Are your algorithms back-tested and adequately controlled?
- Can you promptly report across various trading venues to different regulators via multiple reporting mechanisms?
- Do you have the data needed to produce reports, and can you manage and maintain this data appropriately?
- Do you understand the implications of failing to meet these standards?
All of these questions and many more must be answered in order to comply with MiFID II, which is not only relevant for the firms themselves, but also apply to the individual employees of the firm. Organizations must therefore ensure both compliance with MiFID II regulations and demonstrate employees understand their responsibilities and the implications for non-compliance.
Thomson Reuters Compliance Learning MiFID II Suite
To support your organization’s journey to compliance, and to raise employee awareness, our suite of courses have been developed to cover the following four main areas:
Tailored specifically for buy-side organizations and employees, this course allows employees to understand the focus on better investor protection, increased market transparency and integrity, and how this affects known market structures. For example, employees learn about the impact on core terms such as best execution, how different trading venues are defined, and what role a systematic internaliser plays.
This course has been developed to specifically address and educate employees working in Sell-Side organizations and positions. Looking through the lens of the sell-side, the course informs teams on what to consider differently, for example with regard to trading obligations, high-frequency trading or market making. The course also details the different obligations on trade, transaction and position reporting.
This course focuses on the new trading venue types allowed after MiFID II, and the key differences in the operation of these trading venues. Learners will be able to identify MiFID II’s impact on market transparency and integrity, and better understand systematic internalisers and dark pool trading.
- MiFID II – International Reach of MiFID II – Arriving November 2017
From the angle of international firms, this course explains the wide-ranging impacts of MiFID II outside of the European Union on trading, regulation and governance. International firms of all types operating in financial markets need to be aware of these changes, and their effect on both their business and the markets.
Our courses explain the significant impact of MiFID II on financial services and its wide-ranging effects across the European Union and beyond, providing employees with the “why” of the changes imposed, which helps firms implement a culture of compliance. Our courses support Compliance functions across buy-side and sell side organizations to the organizations outside of the EU who may think MiFID II won’t affect them.