Crunch time for decisions ahead of
MiFID II
5 th ATF Global Summit 2017
With only 11 months left , it was not surprising that MiFID II / MiFIR is on the top of the buy-side ’ s agenda for 2017 according to the outcome of the discussions at the 5 th ATF Global Summit 2017 in the beginning of February in London . Best execution , trade and transaction reporting and the final decision on how to manage dealing commissions are the key themes across asset classes . Equity traders are adapting to a market with concentration of flows towards the market close , as well as predicting how blocks will be traded in the new MiFID II / MiFIR world . Pioneering fixed income traders have already started the dance trading bonds in blocks electronically . This brings new challenges in how to prove best execution in an electronic OTC market . The FX buy-side traders are challenged with the need to post collateral against certain types of derivatives transaction , such as FX swaps , that will take effect under ISDA ’ s new rules which are due to be implemented in March . Based on feedback received by K & KGC from the buy side in our recent ATF Global Summit in London , there are serious concerns about the impending deadline . If there is a sense on the buy side that the industry is unprepared , there is less certainty about how to respond .
Some buy siders expect a delay ; others blame the sell side for leaving things to the last minute , while still others have made preparations and are set against any delay , which could potentially throw their carefully-laid plans into chaos . Thought leading heads of trading are no longer only depending on the investment team to prepare for national elections and referendums . K & KGC has produced a schedule of future election dates , called the " Westerly Winds Reform ", to help the buy side keep track of elections where EU-hostile parties are challenging the status quo in Europe . The effect of additional member countries leaving the EU will put stress on the Euro and ultimately impact interest rates and the global capital markets . Meanwhile in the US , the inauguration of President Donald Trump in January marked the start of a push to roll back some of the financial services reforms of the last few years . A lighter-touch regulatory regime might unburden some of the pressured US banks . It is still to be seen if the political reforms will go as far as making the US small / mid cap markets great again .
We hope you enjoy this issue , and we look forward to see you next time .
Copyright : K & K Global Consulting 2017
March 2017 www . buysideintel . com
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