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MiFID II

Can finance firms bridge the MiFID II knowledge gap?

John Mason

18 Oct 2017

People walk across the melting ice of the Neva River in the centre of St. Petersburg. Photography:Alexander Demianchuk
Photography:Alexander Demianchuk

A new Thomson Reuters report highlights the challenges organizations face as they prepare to meet the complex demands of the Markets in Financial Instruments Directive II (MiFID II).

From new trading venues to greater transparency, and from greater investor protection to the need to demonstrate best execution, the requirements of MiFID II are multiple and far-reaching.

Find out why Thomson Reuters has the expertise to ensure you meet your MiFID II obligations

As businesses and financial institutions are rapidly preparing for implementation on 3 January 2018, our MiFID II Market Readiness Report brings together insights from nearly 5,000 senior regulatory and compliance staff across the world.

The result is an insightful and detailed view into the challenges and potential benefits of MiFID II.

Find out why Thomson Reuters has the expertise to ensure you meet your MiFID II obligations

Find out why Thomson Reuters has the expertise to ensure you meet your MiFID II obligations

The knowledge gap

While awareness of MiFID II is high, our report reveals a significant knowledge gap.

Only 46% of respondents describe themselves as “knowledgeable” about MiFID II. Respondents regard MiFID II as a major piece of financial regulation, yet a large proportion of senior staff involved with regulation and compliance at financial services organizations throughout the world lack knowledge of MiFID II’s requirements.

Watch video — MiFID II Market Readiness Report – The Knowledge Gap

Concern about MiFID II outstrips that of any other regulation, including recent and ongoing challenges such as the Anti-Money Laundering (AML) directive and EU General Data Protection rules.

EU and Asian respondents were the most concerned about MiFID II, both putting it significantly ahead of AML.

Find out more about MiFID II regulations 

Will it be worth it all in the end?

Despite the range of concerns and costs, our survey revealed that it will be worth the effort.

Just over two-thirds of all respondents believe MiFID II will be of overall benefit to their organizations, with this figure rising to three-quarters among those most knowledgeable about the coming regulation.

The greatest benefits identified were better investor protection and improving the transparency of financial markets.

There could also be good news for FinTech and RegTech companies as our respondents believe the need to find new compliance solutions will drive a significant increase in the number of such companies within their region.

Find out more about MiFID II regulations 

Turning a challenge into an opportunity

While our MiFID II Market Readiness Report highlights some serious issues, there is also evidence that these are being addressed, with more money, time and effort going into compliance.

There is also recognition that, despite the initial pain, MiFID II will put the industry and its customers on a stronger and more secure footing.

It’s important to remember that compliance is not purely a defensive play; having everything in the right place and ready to go can provide a competitive advantage.

Watch video — MiFID II – The obligations, the challenges and looking ahead post implementation

As a recognized leader and trusted ally in the market, Thomson Reuters is strongly positioned to support organizations as they address the complex data needs and solve the key challenges of MiFID II.

To learn more about MiFID II and to get a copy of our MiFID II Market Readiness Report, visit mifidii.com.

MiFID II

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