MiFID II Timestamping: A Game-Changer for Financial Services

Posted by Mae Kowalke on Friday, March 11, 2016 with No comments

Operating as they now do in a highly volatile market, banks and other financial institutions are particularly challenged when it comes to managing risk and making well-informed business decisions. To survive and thrive, they must embody agility. Ian Salmon, Market Consultant at Accedian, explores this topic and how it relates to regulation in a Markets Media article, summarized here. 

Regulationsuch as the MiFID II requirement for all data to have a universal timestamp
is a catalyst for change, driving these institutions in a direction they were already eyeing: to hone their strategies using a more accurate understanding of business activities. 

Disparate technology, in the form of multiple systems that operate with different architectures and protocols, is an underlying problem in the financial marketresulting in unsynchronized versions of events in differing formats. To achieve MiFID II compliance, firms (and the network operators who serve them) need to rethink their approaches altogether. It's time for a radical shift. 

Traditional tactical approaches to regulation (focusing on each requirement individually) are no longer effective. A holistic strategy is necessary. For the timestamping requirement, what's needed is a way to grab data off the wire already timestamped. This is achievable, but not without breaking down institutional and technology silos and approaching network instrumentation from a new angle. 

Read the full article for more discussion about MiFID II timestamping requirements and what financial institutions must do to achieve compliance


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