Cappitech MiFID II Industry Survey Finds High Percentage of Non-Compliance in Best Execution
Cappitech, a leading provider of regulatory reporting and intelligence technology for the financial services industry, todayannounced the results of a survey of over 100 European buy- and sell-side compliance decision-makers. The survey examined how MiFID II regulation has affected financial services organisations and how these plan to tackle new regulations such as Best Execution and RTS27/28 in order to improve their business processes.
Additional Survey Findings
- More than half of the respondents were not fully compliant with MiFID II’s reporting mandates on January 3rd this year, confirming industry-wide suspicions that large numbers of market participants were struggling in the run-up to the implementation date.
- Firms are still unclear about which financial instruments fall under MiFID II’s purview from a transaction reporting perspective. ESMA’s Financial Instrument Reference Database (FIRD), conceived to help firms understand their reporting obligations, is complex and confusing.
- Firms that rolled-out new technology prior to the MiFID II deadline might be paying too much for TCA solutions, which in many cases feature unnecessarily broad functionality, designed expressly for bulge-bracket firms.