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Experts predict lenient
enforcement of MiFID
II reporting rules
Firms likely to be given some time to get their reporting accuracy on track in 2018.
E
uropean authorities will likely
provide some leniency to firms
providing trade and transaction
reporting as part of MiFID II
requirements, according to a panel
of experts.
Speaking at The TRADE’s MiFID
II Checklist event in London the
panel debated the possible con-
sequences of over reporting and
inaccurate reporting, informing
delegates regulators understand
the difficult task ahead for firms.
“Speaking to the European
Securities and Markets Author-
ity (ESMA), we have mentioned
real-time reporting is new for the
industry and for non-equity instru-
ments. There are of course going
to be inaccurate records within
that 15-minute timeframe,” said Liz
Carter, managing director of trade
reporting and clearing strategy at
Tradeweb.
“ESMA understands that will
happen and they are okay with it.
If you are demonstrating you are
attempting to be compliant then
there will be some leniency on the
trade reporting side. Although to
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Winter 2017
be clear, if you are trying to swerve
your obligations then there will be
penalties,” she added.
Per Loven, commercial director
at TRADEcho, agreed with Carter
and told delegates this is also his
understanding of the enforcement
of reporting under MiFID II.
“Nobody expects this to be per-
fect come 3 January next year. The
point is best efforts count and if
firms do as much as they can then
other aspects of the requirements
will begin to work themselves out,”
he said.
Matthew Luff, MiFID II consul-
tant at Janus Henderson Global
Investors, added buy-side firms
will do their best to keep reports
as accurate as possible, but there
will be instances where mistakes
are made.