MiFID II / MiFIR Transaction Reporting A Practical Guide

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So, what can firms do? When MiFID I was introduced in 2007, many financial institutions failed to respond correctly, resulting in expensive and inefficient ‘quick fixes’, and in the cases above, significant financial penalties. The current state of play in terms of data control processes at most financial institutions, tends to be one of the following: Spreadsheets, UDAs and manual work Due to the complexities surrounding data control and reconciliation, many institutions are still using spreadsheets and manual work to fulfil their reporting obligations. However, with the vast increase in data that MiFID II/MiFIR is going to bring, such solutions will soon become impractically expensive and high risk. User-Developed Applications (UDAs), for example, generally rely on key members of staff to edit and maintain them, creating high levels of risk should they be unavailable at critical times. Also, as these UDAs are often in Excel, there are no proper audit, evidence, governance or workflow functions. This might be fine when everything is working properly, but as soon as there’s a break, or if an unaudited user changes critical matching criteria, it’s far more difficult to fix or even find the route cause of the problem – leading to resource-intensive projects and the potential for large fines. While regulators have not specifically outlawed the use of spreadsheets and UDAs, it is commonly accepted that under MiFID II organisations need a much more robust and scalable approach to data control. Legacy architecture Many firms will be updating their current systems to support the new regulations. However, the majority of these systems are difficult to scale, particularly considering the large increase in reportable fields and data required. Recent research from Aite group, for example, shows that it takes over 64 days on average for financial institutions to set up a new reconciliation. Similarly, just patching up an old system to handle new data is hardly future-proofing the organisation for subsequent changes. MiFID II and MiFIR are certainly posing data challenges for financial institutions, but they’re also a great opportunity for firms to fundamentally transform their control processes, enabling them to react more quickly and more efficiently to upcoming regulations. Average time taken to analyse, build and test a new reconciliation Analyse Build Test 23.87 25.67 14.86 Days Days Days Source: “Reconciliation Trends in 2016: Regulation and Nervous Recs”, Aite Group, February 2016 Total 64.4 days MiFID II / MiFIR Transaction Reporting A Practical Guide
Duco can help The current methods of controlling data are slow, expensive, outdated and unscalable. Spending more time and money on manual processes, or hacking together an old system to deal with new requirements, clearly does not make sense in today’s highly competitive business environment. However, using Duco Cube – our revolutionary hosted data control solution – organisations can completely transform their operational processes. Transformation Replaces manual work Agile, scalable and cost effective, Duco Cube automates manual processes, saving large firms millions in the first year alone. Replaces legacy systems Works with any data, in any format, without need for large IT projects. Implementation times can be cut from months to hours. Future-proofed for change Asset-class agnostic and extremely flexible – whatever data challenges the future holds, Duco Cube is set up to handle them. Science Machine learning Duco Cube uses intelligent algorithms to learn and adapt to your data, highlighting issues and suggesting solutions at speed. Empowering end users Our unique ‘Natural Rule’ language means non-technical users can set up controls without writing a line of code. Complexity made simple Duco Cube is extremely powerful, but that doesn’t mean it’s difficult to use. Simple, intuitive interfaces make running reconciliations fast and hassle-free. Control Available on demand As a hosted service, Duco Cube can be switched on within hours, delivering ROI immediately – no IT spend necessary. Powerful workflow Duco Cube provides intelligent break management workflow, to ensure all issues are prioritised and actioned effectively. Fully compliant All tasks are recorded in an audit trail for evidence analysis. Permissioning controls ensure processes are compliant and in line with corporate governance. MiFID II / MiFIR Transaction Reporting A Practical Guide
Page 1 and 2: MiFID II / MiFIR Transaction Report
Page 3 and 4: MiFID II and MiFIR: disambiguation
Page 5 and 6: MiFIR transaction reporting summary
Page 7 and 8: Investment decision maker and execu
Page 9: The cost of non-compliance In recen
Page 13: London Exmouth House 3-11 Pine Stre

MiFID II / MiFIR Transaction Reporting A Practical Guide

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