FIX Trading Community Creates Six Subgroups To Address MiFID II Regulation

FIX Trading Community, a non-profit industry-wide initiative, has recently fostered a targeted focus on MiFID II, culminating in the creation of six new subgroups to specifically address the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.

Last month, the European Securities and Markets Authority (ESMA) published its Final Report covering the draft Technical Standards on authorization, passporting, registration of third country firms and cooperation between competent authorities. The report originated from extensive public consultation regarding the EU’s financial legislation, Markets in Financial Instruments Directive II (MiFID II/MiFIR), which provides a Directive and Regulatory statement.

In order to better grapple a period of regulatory change and upheaval, FIX has devoted six new specialized subgroups to MiFID II regulation, following a recent meeting with European regulatory authorities. As such, the six subgroups are as follows:

• Clock Synchronisation
• Reference Data
• Transparency
• Best Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term
• Microstructure
• Order Data and Record Keeping

With regards to the six subgroups, each unit has already held its own initial meeting, subsequently choosing specific terms of reference and policy goals moving forward. Overall, each group will help transmit and promote regulatory technical standards (RTS) as stipulated by ESMA.

According to Rebecca Healey, CEO, Incisus Group and Co-Chair EMEA Regulatory Subcommittee, FIX Trading Community, in a recent statement on the subgroup’s launch, “With under 18 months to go, and at a time of such regulatory change, industry collaboration is vital. Shared ideas and experience will not only establish tangible guidelines but will enhance compliance through the implementation of industry standards. By working together, the cost of regulatory change can be reduced, both from a human capital perspective as well as unnecessary IT spend.”

“FIX Trading Community believes that the application of appropriate standards can help to reduce the cost of regulatory change. With the addition of these new subgroups, the Community will directly target specific MiFID II/MiFIR regulatory technical standards and provide tangible guidelines that we believe will assist both the regulators and market participants,” added Matthew Coupe, Director, Barclays and Co-Chair EMEA Regulatory Subcommittee, FIX Trading Community, in an accompanying statement.

Generally speaking, the passage of a regulatory mandate as large as MiFID II has caused some anxiety across European financial services. A large part of the apprehension is due to the lack of clarity about whom will be affected and how, however there is still hope in some quarters that one or two of the more challenging aspects of MIFIR reporting may be averted.