MIFID II : DROWNING IN DATA
The amount of data required pre- and post-trade under MiFID II is a ‘ massive headache ’ for firms , writes Hayley McDowell …
Data management is a serious problem for asset managers
ahead of MiFID II . In a straw poll of industry
participants conducted by The TRADE , there was broad agreement that data reporting and management will be among the most problematic areas for buy-siders implementing MiFID II compliant systems .
It comes after a recent survey conducted by Linedata , which concluded that data management was a concern for almost 30 % of financial businesses .
The report stated that issues such as best execution and managing customer data have been granted increasing prominence by regulators in recent years .
Nick Fienberg from Alpha FMC explained the challenge for the industry will be in actually proving that practices across the functional chain are aligned with investors ’ interests .
He says : “ With transparency requirements inevitably come onerous demands on data capture , storage , and ultimately breadth and accuracy of reporting .
“ Reporting requirements could extend to details of execution venues used by order type ( market , limit orders ), over a 12 month rolling period by client type , and order breakdowns which capture the reasons behind the trading style , including price , cost , speed , likelihood of execution .
“ Order level data may well need to include an identifier for the person who made the investment decision , and the person who executed it .”
Fienberg ’ s thoughts were echoed by founder of fixed
58 | THE TRADE MiFID II HANDBOOK www . thetradenews . com