MiFID II - where we are

SIX Financial Information is actively working with clients to fulfill MiFID II content needs throughout 2016/2017, in order to ensure that they are ready for the 2018 deadline.

The scope of financial instruments covered by MIFID II has been extended to cover all asset classes. SIX Financial Information will deliver accurate and high quality reference, listing and market data over their complete life cycle, including corporate actions.

SIX Financial Information is concentrating its activities on the following 3 key areas:

1. Investor Protection

There are amendments required to  the various instrument classifications, as described by ESMA in the MiFID II / MiFIR Asset Classification (RTS Annex I).

We will classify the financial instruments according to the directives and by considering ‘local-flavours’. This includes complex/non complex categorization, reporting ability etc.

We are also supporting suitability and appropriateness testing of the financial institution’s advisory process to ensure that the advice meets the investment risk appetite, and the profile of the investor.

2. Transparency

Pre- and post-trade transparency regimes are extended under MiFID II for non equity instruments such as bonds, structured finance products, emission allowances and derivatives. We will provide analysis for the various regimes.

Pre-trade transparency requires analysis for:

  • Suspensions
  • MRM (Most Relevant Market)
  • LIS (Large in Scale)
  • SMS (Standard Market Size)
  • Publication waivers
  • Consolidated statistics on Best Trading Venue, narrowest spread, highest turnover etc.
  • Average daily notional amounts, average daily number of trades etc., providing additional statistics on a daily basis
  • IBIA (debt) / COFIA (ETD, Struct.) new liquidity measures for debt, ETD and Structured Products
  • Thresholds for derivatives, excluding equity derivatives

Post-trade transparency require analysis for:

  • deferred publication thresholds and delays

3. Transaction & Market Data Reporting

The number of fields in a transaction report has risen from 24 under MiFID I to 81 under MiFID II. Identifiers in particular are playing an important role within the reporting obligations. We are therefore working on the extension of the following topics:

  • LEI (Legal Entity Identifier) for e.g. beneficial owners, issuers, operators of trading venues and CCPs
  • ISIN is the only required Identifier for securities traded on trading venues. Challenge with regard to Exchange Traded Derivatives (ETDs)
  • FISN (Financial Instrument Short Name)
  • CFI (Classification of Financial Instruments)
  • MIC (Market Identifier Code)

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