What are the two biggest topics for the EU financial industry at the moment? Attending the CME Group’s Regulation Conference in Dublin last week, the clear answer is MiFID II and to a lesser extent Brexit.
At Cappitech, one of the most difficult processes we solve with our EMIR Reporting technology is UTI matching. Standing for Unique Trade Identifier, a UTI is an alphanumeric identifier required for each trade transaction. For EMIR reporting, both counterparties to a transaction need to report the same UTI for their leg of the trade.
With MiFID II regulation arriving soon, the FIX Trading Community has been working since 2015 to create new protocols for the FIX messaging protocol especially designed for the new regulation. Getting released this week are three MiFID II extensions that cover protocols for clock synchronization, post-trade obligations and new data requirements.
ESMA has issued its latest update to their Q&A paper on EMIR Regulation. Begun in 2014, the Q&A paper is periodically updated with answers to industry issues relating to the implementation of EMIR reporting.
Within the tech world, financial technology has been branded its own niche of FinTech. As what falls under fintech has broadened to include subsectors such as mobile banking, consumer focused trading platforms, P2P trading, crowdfunding and low-latency connectivity, many of these specific fields are receiving their own individual names and focus.
Throughout 2016, our Cappitech blog posted often about a variety of financial regulation initiatives affecting EU regulated brokers, banks and fund companies. Reviewing which posts were the most read provides a glimpse at which issues were the most important to our readers in 2016 and predicts what financial firms are caring about for 2017.
With us nearing 2017, the January 2018 date for MiFID II implementation is closing in quickly. Appearing with the regulation will be new and updated versions of reporting requirements facing financial firms. Two of the reporting obligations being put in place are transaction and trade reporting.
Within the Cappitech blog, we’ve focused a lot on the change in sentiment among regulators towards Forex/CFD/Binary Options brokers. From bans on online advertising and restrictions on how brokers communicate with their customers, EU regulators are now focusing on bonuses and leverage.
Closing out the European Alternative Investment Funds conference hosted by the Association of the Luxembourg Fund Industry (ALFI) was a fintech panel. For asset management, innovations in finance technology is both a provider of investment opportunities such as equity crowd funding and P2P lending, a path to diversify client distribution and enabler to reduce the burden of compliance.
For the past few years, after returning from industry conferences such as the iFX Expo in Cyprus/Hong Kong and the Finance Magnates London Summit, I have published my thoughts on trends and interesting topics from the event.