Identify and Reduce the Risk of Regulatory Censure
The Market Abuse Regulation (MAR) became effective throughout the European Economic Area on 3rd July 2016 and the Markets in Financial Instruments Directive II (MiFID II) comes into effect on 3rd January 2018. The aim of these regulations is to increase market integrity and investor confidence while ensuring a single rulebook and level playing field across the EU. In addition, they have greatly increased the compliance burden – and associated costs – for buy-side firms who can no longer simply rely on the controls provided by their brokers and other third parties.
MAR builds on the agenda of the Market Abuse Directive (MAD), which it repealed. But it is wider in scope, covers more financial instruments and includes more trading venues. MAR also extends market manipulation to include attempted manipulation and prohibits abusive behaviour regarding benchmarks. How much do you know about the key requirements of MAR? Take our quiz to find out.
MiFID II is considerably broader than its predecessor and makes sweeping changes to pre- and post-trade transparency in addition to extending instrument coverage and trading venues (once MiFID II is implemented, MAR will harmonise with this extended instrument coverage). Best execution requirements within MiFID II include the need to demonstrate ‘sufficient efforts’.
A specialist managed service for buy-side compliance officers
RIMES RegFocus offers a sustainable, cost-effective solution to the many complex challenges of MAR and MiFID II compliance. Our service is designed specifically to reduce the risk of insider dealing and market manipulation in accordance with Reg. EU 596/2014 and ESMA RTS and to provide reporting and monitoring capabilities in line with Directive 2014/65/ EU and ESMA RTS 28. With its unique, powerful processing capabilities, RegFocus is designed to streamline and simplify regulatory compliance for buy-side firms. In practice, it is a managed service designed by compliance officers for compliance officers.
RegFocus sources, captures and maintains all the necessary data elements to facilitate a comprehensive review of all order and trade activity across related legal entities and confirm that best execution has been obtained. By using RegFocus, a compliance officer can achieve a commanding view of key regulatory obligations and is empowered to act quickly and confidently.
RegFocus at work
RegFocus translates regulatory guidelines and rules governing trading conduct and best execution into alerts to identify potentially abusive order and trade behaviour accurately and early and to ensure that clients receive the best possible outcomes. Using powerful algorithms and analytics, our service monitors and detects behaviour across multiple exchanges and asset classes, including ETFs, benchmarks, indices and portfolio rebalancing activities. The service accommodates single order or trade and basket monitoring and can be tailored to suit individual roles and management hierarchies.
Here’s what you get with RIMES RegFocus
- A fully scalable solution that grows with the business
- Comprehensive reporting, including suspicious transaction reporting, full investigation and audit trail functionality
- A personalised and intuitive dashboard
- Integration with existing systems regardless of technology