TABB: MiFID II – Out of crisis comes opportunity

01 December 2015

Leaders within financial institutions feel that their careers are defined by moments that matter, rather than by a long-term consistent effort.

MiFID II will open up new sources of liquidity by bringing certain asset classes onto exchanges and improve transparency and accountability. It has the potential to precipitate the emergence of new players much like MiFID I brought about MTFs and dark pools. Conversely, the technological and process-related efforts needed to comply are gargantuan, and the timescales (at the moment) are limited. Indeed, the directives are just that – directives, rather than instructions, and as such how best to architect a solution is still unclear.

What is clear, however, is that it’s going to cost. How much is unknown, and although the FCA has started a cost analysis, an accurate final figure won’t be known until implementation has been completed. While costs are inevitable, there is also the opportunity for profit. Several areas of the market are being changed to such an extent that new sources of revenue will become apparent and forward-thinking companies can take advantage.

Full analysis

© TABB