MiFID II: Combining compliance and efficiency

Intensifying regulatory regimes threaten business disruption

New legislative frameworks implemented by governing bodies and regulators can often be cause for consternation among participants in financial markets, who must rapidly adapt to changing regulatory circumstances. This can involve the overhaul of a number of systems and operational procedures. For example, many banks struggled to accommodate the stringent requirements of the European Union’s Markets in Financial Instruments Directive II (MiFID II) while maintaining business-as-usual operations.

Killing two birds: aligning business and regulatory goals

Ahead of the deadline for MiFID II’s implementation, Lab49 was approached by a large European investment bank seeking to create and implement a workflow which was compliant with the regulation. As a starting point, we sought to align the bank’s business goals with the regulatory objectives of MiFID II, conducting an analysis of existing processes to identify how automation and improvements to business operations could address both counts.

Continuity, compliance, and core operations done better

The subsequent program of systems integration enabled the bank to both achieve compliance with MiFID II requirements and increase the efficiency of its core business operations, by centralizing operations which were once spread across the bank’s desks. This project ultimately allowed the bank to become compliant ahead of the MiFID II deadline and minimize disruption to business operations while increasing efficiency through automation.