MiFID II aims to improve financial market’s efficiency by enhancing the current MiFID I. The Directive will go live in January 2017/18, and investment firms face major challenges across the organisation. Axis Corporate was requested to lead the Product and Instrument Reference Data MiFID II compliance work stream.
- Multiple impact across functions and teams; front to back office.
- Quality and integrity issues on reference data.
- Cross regulatory requirements not managed on an holistic approach.
- Significant amount of regulatory requirements to be assessed and translated into business requirements.
- Lack of understanding of MiFID II challenges around certain areas: OTC pre trade obligations, investor protection enhancements, transaction reporting attributes, etc.
- Analysis of regulatory requirements was conducted and compared against the current reference data situation (including workflows and data extract scrutiny).
- GAP analysis was performed and implementation plan defined.
- Future strategic solution and Target Operating Model were defined.
- Remediation effort was assessed and design principles established.
- Business requirements were submitted to adapt current platforms to MiFID II.
- Business requirements to transform current architecture submitted.
- Operational risks analysed and process gaps identified.
- Cost-efficient strategic solution designed.
- Remediation effort measured.