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[ A D V E R T O R I A L ] TECHING UP FOR MIFID II The buy-side is going to need more technology solutions than ever before to cope with MiFID II. We catch up with TradingScreen’s head of European sales and account management, Chris Hollands, to discuss what the buy-side are telling him. The TRADE: What are the main issues you’re hearing from the buy- side as MiFID II approaches? Chris Hollands: Right now they’re full of questions; Do I have the right set of execution and liquidity management tools especially in the OTC world? What are my report- ing obligations? Do I have all of the access to the necessary execution venues? We’re also seeing the highest number of buy-siders actively look- ing for new systems for a decade, including execution management systems (EMS). This is primarily being driven by a flight to quality to ensure they can get systems that fully meet both their regulatory and business needs. TT: Is this activity driving an opera- tion and behavioural change on the buy-side trading desk? CH: Absolutely, we’re seeing elec- tronic trading convergence and consolidation across asset classes, which is driving demand for more multi-asset traders and systems that can handle a multi-asset class trading philosophy. There’s also a much closer spotlight on buy-side traders than ever before on the achievement of best execution, which means they’re looking for analytical and execution tools that can help them. We expect there to also be greater 20 TheTrade Spring 2017 scrutiny on algo usage, meaning traders will need a better under- standing of how the algos they use actually behave and the results that they produce. TT: How will this impact buy-side workflow? CH: We foresee an increased dia- logue between the buy-side trader and the PM to communicate more on the progress of in-flight orders and execution choices. If anything, the role of a trader becomes more important as they will not only have to seek liquidity and manage the trade but be more conversant in reporting mechanisms and regulation. I foresee good traders being an interpretation layer for the PMs. This will be facilitated by the use of more real-time, in-trade analytical tools including execution venue analysis, OSUs (Order Status Updates) from the brokers’ algo engines and chat tools. TT: A lot of emphasis has been placed on the importance of data management and reporting under MiFID II, what impact will this have on buy-side EMS use? CH: EMSs have long played a cen- tral role in that piece of the trading workflow, whether it’s accessing transaction cost analysis (TCA) on a pre- and post-trade basis, connectivity to order management systems or feeding market data. Some EMS providers have already been pushing towards offering hosted connectivity and data hubs for a while regardless of MiFID II, meaning that their clients can leverage a broadly connected pre-certified FIX network and a very considerable repository of product and market data. On the reporting front, we have recently made a very significant investment in our integration of Tableau, one of the leading data representation systems available in the market place. TT: With so many venues and execution options available, what sort of analytics are the buy-side demanding to help them in their quest for best execution? CH: Firms are looking for both neutral and broker-sponsored pre- trade and in-trade analytics, ideally with exception-based alerting to