Peach have released a MiFID Compliance Mapping and Proof (MCMP)certification scheme for financial institutions and software vendors, to help them with their MiFID compliance issues and challenges.
MiFID,introduced in November 2007 will have a significant impact on the financial services’ sector across the EU and involves the most extensive reform ever undertaken.
Reforms include clear and effective risk management policies and practices, all transactions to be at “Best Execution” prices. Proof by way of time-frozen snapshots of executed and non-executed trades and transactions should be provided. “Know Your Client”, “Treat Customers Fairly” and ethical “Conduct of Business” are integral parts of MiFID.
MiFID has a great impact on business practices, computer applications, scenario modelling, workflow and procedures. Major obligations cover: All financial instruments, including equities, bonds, and money market instruments, Foreign Exchange, and all types of derivative.
Banks within the EU will be able to trade shares internally and off an exchange respectively but will be required to publish the prices of intended trades to the rest of the market beforehand.