FSTech: Cognizant’s Vice-President and Head of Banking and Financial Services Practice for the UK and Ireland Writes About Preparing for MiFID II

“Since the Markets in Financial Instruments Directive (MiFID) was enforced back in November 2007, the economic landscape has changed dramatically,” writes Tony Virdi. “MiFID II will involve the addition of previously unregulated organized trading facilities to the MiFID framework, new safeguards for algorithmic and high-frequency trading activity, additional supervision of derivatives markets, and more stringent portfolio management requirements. Moreover it will introduce measures to protect investors."

"MiFID II will require significant change for financial services firms in terms of both internal infrastructure and day-today business processes,” writes Virdi and adds that companies need to ensure they are meeting quickly changing regulations. “IT plays an essential role in allowing this to happen smoothly. Businesses must think carefully about how they work with their technology teams when implementing these adjustments across the enterprise.” He notes, “The full impact of MiFID II can only be ascertained once the legislation is fully in place. Forward-thinking firms will use this opportunity to upgrade their IT infrastructure and ensure a flexible approach to take advantage of the market benefits MiFID II could bring.” 

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