The fundamental relationship between banks and investors has changed.

Enhancements to the Markets in Financial Instrument Directive (MiFID II) took effect on January 3, 2018.

How does MiFID II impact your business?

MiFID II reaches far beyond the EU in today’s interconnected world. New regulation asks the core question, what exactly do investors pay for?

Sweeping changes have been introduced to the way research is valued and consumed. Because costs for research services and trade execution must be separated—unbundled.

Banks must:

  • Charge for research
    Everything must have an explicit price.
  • Ensure effective evaluation by clients
    All services and interactions must be recorded and regularly reconciled.
  • Justify allocations
    All deal allocations must have supporting evidence.
  • Have clear transaction reporting
    In-depth reporting on transactions must be adopted.
  • Adopt transparent market sounding measures
    Processes must be standardized for over-the-wall disclosure, to provide a clear audit trail.

Investors must:

  • Justify all research consumed
    Unbundling requires evidence the firm is not being induced to trade.
  • Reconcile all interactions
    Research budgets must be managed by reviewing all activities delivered by all brokers.
  • Value all interactions
    Brokers must be evaluated based on systematic evidence.
  • Adopt transparent measures
    Processes must be standardized to provide a clear audit trail.

What is the role of technology?

Technology is fast evolving to connect banks and investors like never before.

New developments help firms to address MiFID II requirements through:

  • Greater transparency
    A complete and electronic audit trail helps you see all services delivered and consumed.
  • Easier reconciliation
    Standardization of all activities lets you review quickly and accurately.
  • Appropriate evaluation
    A new research and evaluation process that is tightly linked to reconciled activities lets you make true comparisons.
  • Automation
    Automated entries for IOIs in primary markets help you to reduce risk and stay up-to-date.
  • Easier reporting
    Automated reporting to justify actions and comply with regulation.

See what people are saying about the latest advancements in technology:

Why is the Dealogic solution unique?

Dealogic is the only platform that provides a seamless two-way connection between banks and investors in a MiFID world.

Dealogic Connect allows banks and investors to share, evaluate, and reconcile resources easily and electronically—and ensures that both sides know the value of what they create and consume. Our solutions are market-driven, and we have worked closely with regulatory and industry bodies including the Financial Conduct Authority (FCA) and the FIX Trading Community
Stay ahead of MiFID II with Dealogic

Whether for investors or banks, Dealogic delivers integrated technology to help you address regulation through transparency, standardization, reporting, and automation.