Financial firms have MiFID problem

Financial companies are struggling to meet the storage and retrieval technologies required to meet the Markets in Financial Instruments Directive (MiFID).

Financial companies are struggling to meet the storage and retrieval technologies required to meet the Markets in Financial Instruments Directive (MiFID).

According to research from JWG-IT Think-Tank, 64% of financial companies interviewed said they had problems reconstructing trades after the event within a reasonable time.

Under article 51 of MiFID companies must prove that they acted within their own policy when executing trades. This can be requested by regulators years after the event.

Customer records must also be stored and retrievable if regulators request.

PJ Di Giammarino, CEO of JWG-IT, said: "If you get caught out with it wrong, it could cost you hundreds of thousands of euro in fines. You now need to know more about the quality of the bullets in the gun you have handed over. If what you have given to the regulators, the market and your customers does not match what you hold internally for up to five years from 1 November you are exposing yourself to new risks."




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