An Information Development Approach to MiFID

From MIKE2 Methodology

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Markets in Financial Instruments Directive (MiFID) aims to create a single financial market in Europe which presents a value shift from the financial industry to customers by protecting the customer and providing increased transparency. This will evolve into a more competitive market in which the customer should benefit. On a broad basis, MiFID brings a number of information management issues to the fore order to better manage reference data, classify clients and report on transactions.

One of the challenges with MiFID is that not all the requirements are clear related to the detailed management of information. In particular Article 25 requires investment firms to report on all financial instrument transactions and maintain detailed records. The Regulation specifies and describes particular data fields that need to be reported but it does not prescribe the particular technical standards which should be used. For example, it is not prescribed whether firms should use a particular code identifying a financial instrument or the trading venue where the transaction took place as long as those codes are unique and enable the competent authority to ascertain what instrument was traded and on which venue. However, the implication is that firms require a consistent way of identifying all financial instruments, venues and clients and then storing that information.

Contents 1 An Overview on the Business Solution 1.1 Definition of the Solution Area 1.2 Impacted Industries 1.3 Why this Solution Requires an Information Development Approach 2 Typical High Level Business Requirements 3 Project Delivery using MIKE2.0 3.1 Key Components Required from SAFE Architecture 3.2 Applicable Activities from the MIKE2.0 Methodology 4 Best Practices for Implementation 5 Areas of Complexity 6 Applicable Software Solutions

An Overview on the Business Solution

Definition of the Solution Area

Impacted Industries

Why this Solution Requires an Information Development Approach

Typical High Level Business Requirements

Project Delivery using MIKE2.0

Key Components Required from SAFE Architecture

Applicable Activities from the MIKE2.0 Methodology

Best Practices for Implementation

Areas of Complexity

Applicable Software Solutions