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Taking an integrated view of MiFID II Best Execution regulations

Given MiFID II’s far-reaching implications, banks will want an integrated solution.

Overview

MiFID II Best Execution requirements, meant to bolster 2007’s MiFID I Best Execution requirements, will debut in less than two years, in January 2018. Changes include:

  • Instead of taking all reasonable steps to obtain the best results when executing client orders, firms now must take sufficient steps.

  • Banks will need to publish annual reports regarding their top five best execution venues, as measured by trading volume.

  • Financial enterprises will need to notify clients regarding material changes to order execution arrangements.

Will your business be ready to meet new MiFID II requirements?

Many other changes have been outlined, that will have implications for a financial business’s full solution suite. MiFID II programs will need to be integrated across the business. Will your business be ready to meet new MiFID II requirements?

LEARN MORE FROM OUR REPORT: BEST EXECUTION—HELPING FINANCIAL FIRMS GET THE BEST RESULTS UNDER MIFID II

Key Findings

The challenge for financial firms, will be implementing these use cases.

In light of the new Best Execution requirements, Accenture has identified three use cases that banks can consider when reviewing their Best Execution practices. These include:


Use case 1: regulatory reporting

A pre-defined set of 12 standardized reports to be generated either quarterly or annually, based on requirements.


Use case 2: ad-hoc client reporting

Additional information regarding execution, based on client request.


Use case 3: monitoring


Ongoing monitoring of execution venues to review quality and compliance, and generate metrics.

The challenge, for financial firms, will be implementing these use cases. They will need control models, data, technology, policies and a strong operating model to support their efforts. Given the far-reaching implications of these regulations, solutions will need to be fully integrated across the business.

Recommendations

The good news for banks facing MiFID II Best Execution requirements? Accenture is highly experienced with these regulations, and has assisted financial services providers with Best Execution for both MiFID I and MiFID II.

Organizations are likely to face a broad set of challenges as they work to implement their response to MiFID II. They will want their approach to be integrated. Their response will need to consider the full end-to-end impact, across the business’s solution suite.

Is your financial enterprise ready?

READ THE REPORT: BEST EXECUTION—HELPING FINANCIAL FIRMS GET THE BEST RESULTS UNDER MIFID II