MiFID II is part of a wider move towards the complete digitisation of financial services. As the reporting requirements placed on industry become more onerous, electronic trading and general digital transformation become more important.
What are the costs of non-compliance?
Industry has made a significant effort to meet its new obligations under MiFID II, and in particular the reporting requirements it imposes. However, non-compliance is still widely reported, and it is being actively penalised. The European Securities and Markets Authority (ESMA), along with the UK's Financial Conduct Authority and other regulators, take pro-active enforcement action against market participants that fall foul of MiFID II. In 2020 regulators imposed €8.4 million in MiFID-related fines, an increase of nearly 400% on the previous year - and, crucially, they are expected to double down on enforcement efforts with the introduction of MiFID III in 2025.
The MiFID regime requires firms to collect, manage, and make available vast amounts of data, to do that, many have had to develop entirely new processes and functions. Enforcement action and related fines occur when there are gaps in that data, and this remains a major issue for many market participants. Indeed, some estimates suggest that almost every financial services firm in the EU is failing to meet their MiFID obligations in some way, with most unaware that they are doing so.
Plugging those gaps
In order to ensure compliance, firms need to plug any data gaps that remain and ensure that they can meet regulatory requirements in a frictionless way. Alongside internal capabilities, ETD has developed products and services that ease some of the reporting burden. Forensyx historical transaction reporting data solution plus products such as RegXone that capture regulatory reporting data, help firms to meet their obligations and in partnership with MDX Technology this data can be accessed fast and with ease.
MDX Technology represents a step-change in data provision in financial services, enabling firms worldwide to access the information they need with ease and, crucially, to plug the data gaps that are leaving so many vulnerable to MiFID-related enforcement action. The overlay of no code workflow then allows firms to automate the production of regulatory reports, completing the compliance cycle.
MDX Technology enables ETD to offer plug-and-play access to a full suite of regulatory data services, designed for financial services firms globally. ETD‘s market leading data combined with MDX Technology’s deliver connectivity, automation and workflow, presents a huge opportunity for clients, it’s the perfect partnership.
Contact us to help you plug your regulatory reporting data gaps.
