Making Sense of MiFID II
Jun
11

Making Sense of MiFID II

Whitepaper: Making Sense of MiFID II

Who is affected by MiFiD II?

regulationsThe list of those affected by MiFID II is significantly more comprehensive than that under the FCA and includes:

Investment firms
Credit institutions
Portfolio managers
Broker-dealers
Stock brokers
Corporate finance companies
Commodity firms
Market operators
Central counter-parties
Data service providers

The State of Play Today

There are various ways that firms today are meeting the FCA call recording requirements, utilizing current call recording technology. Many systems are unable to handle mobile call recording and in order to get around this some firms have completely banned the use of mobiles for trading. This “management by policy” is effective but somewhat limiting for the firm and removes a number of effective and valuable communication channels that could be delivering business efficiencies. Some firms only allow trades to take place through a trading desk. All calls made by the trading desk would be recorded and therefore compliant under current legislation. A number of firms also wrongly believed that trades which happened when traders used personal mobiles, were not covered by the legislation and they were therefore not liable – particularly if the traders had signed a declaration stating that they would not trade on devices that were not corporately owned. The onus on the recording of the calls still lies with the trading organisation who must be seen to have taken all reasonable steps.

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