[ I N D E P T H | M I F I D I I ]
“ We estimate that under MiFID , we will capture some 30-35 million transaction reports a day , up from 20 million before its introduction ”
ANDREW BAILEY , CHIEF EXECUTIVE , FINANCIAL CONDUCT AUTHORITY
through efficiently and it is being reported properly . I can ’ t imagine that process has gone smoothly for anyone because we have heard that the test environments were available very late .”
It ’ s not just market participants that are cognisant of the current issues around reporting and what needs to be addressed in future . Speaking at an event held by the International Capital Market Association in early March , chief executive of the Financial Conduct Authority ( FCA ), Andrew Bailey , said the effects of MiFID II will only play out in full over a period of time , and that there was still more to do on implementation , particularly on reporting .
“ A key challenge for firms in implementation was the expanded transaction reporting requirements ,” he said . “ These involved a step change in both the volume and quality of data we receive regarding transactions taking place in the market .
“ The FCA , alongside ESMA , undertook extensive technological work to be ready to receive , interrogate and ultimately learn from this dataset . We estimate that under MiFID , we will capture some 30-35 million transaction reports a day , up from 20 million before its introduction . There is a determination on our part to exploit the full possibilities of these data to support our efforts to deter , detect and punish market abuse .”
While Bailey warned that the regulator would not be showing forbearance to firms that prove incompliant with MiFID II , it ’ s clear that the FCA is aware of the scale of the challenge firms are grappling with , even with the years-long lead time the industry has had to prepare .
Since the 3 January implementation date , the FCA has made several moves to bolster up its oversight of MiFID II . In mid-February the regulator launched a request for input from the industry , looking to review how technology can help firms to better meet reporting requirements and improve the overall quality of the data submitted , on the back of its two-week ‘ TechSprint ’ which resulted in proof-of-con-
38 // TheTrade // Spring 2018