MiFIR special report
Identifiers taking on greater importance in compliance with European MiFIR rules
Click here to download the PDF
March 2016 -- sponsored by London Stock Exchange Group and SIX Financial Information
All About The Identifiers
The greatest impact of Europe's Markets in Financial Instruments Regulation (MiFIR), once it eventually takes effect in 2018 (for a take on the delay, see a Q&A with Chris Pickles), is expected to be increased centralization of data in firms and a greater focus on the quality of data relevant to compliance with the rules, according to industry executives who took part in the Virtual Roundtable in this report.
At the same time, they point to the assignment and standardization of identifiers as a big challenge that must be addressed and managed in order to be ready for 2018. HSBC's Chris Johnson points to the likelihood of a 'no LEI [legal entity identifier], no trade' rule for MiFIR reporting, and a separate identifier, the ISIN, that will be used for OTC derivatives reporting under the regulation.
Yet, as SIX Financial Information's Jacob Gertel observes, AII, MIC, CFI and FISN identifiers still carry importance. AII, the Alternative Industry Identifier, in particular, is aimed specifically at derivatives, which makes one wonder if there is something incomplete about ISINs for the purposes of MiFIR compliance.
If the LEI remains the main identifier for MiFIR compliance, the industry may not have done enough to prepare. David Nowell of UnaVista, which is part of the London Stock Exchange Group, says he has not yet seen "any major increase in the number of LEI applications ahead of MiFIR." Regardless, if firms have not obtained LEIs by 2018, "trading venues and regulators will make sure that entities have it," adds Gertel.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Technical and regulatory questions surround Europe’s T+1 move
The EU roadmap mirrors the UK’s goal of an October 2027 move. With more than two years to prepare, firms must consider how to implement the non-prescriptive guidelines and weigh where to automate.
Asic probe piles pressure on ASX to deliver Chess replacement
But market insiders think late intervention by regulators could even slow down implementation.
Stakes raised for UK bond, EU derivatives tapes after Ediphy clinches win
The pressure is on for TransFICC, Etrading, Finbourne, and Propellant Digital, who are still vying to provide the UK’s fixed income consolidated tape after Esma awarded the EU’s tape to Ediphy and its partners.
Doing a deal? Prioritize info security early
Engaging information security teams early in licensing deals can deliver better results and catch potential issues. Neglecting them can cause delays and disruption, writes Devexperts’ Heetesh Rawal in this op-ed.
SEC pulls rulemaking proposals in bid for course correction
The regulator withdrew 14 Gensler-era proposals, including the controversial predictive data analytics proposal.
Mastering regulatory compliance through reliable data access
Firms continue to struggle with regulatory updates and sourcing accurate data
Trading venues seen as easiest targets for Esma supervision
Platforms do not pose systemic risks for member states and are already subject to consistent rules.
The Consolidated Audit Trail faces an uncertain fate—yet again
Waters Wrap: The CAT is up and running, but with a conservative SEC in place and renewed pressure from politicians and exchanges, Anthony says the controversial database faces a death by a thousand cuts.
