Industries
Markets in Financial Instruments Directive
MiFID: a problem or an opportunity?
Launching in November 2007, MiFID – the EU Commissioners’ Markets in Financial Instruments Directive – is a key measure leading to the creation of a single European market in financial services. It will replace the existing Investment Services Directive (ISD).
The aim of the ISD was to set out some basic high-level provisions governing the organisational and conduct of business requirements that applied to certain financial institutions. It also aimed to harmonise conditions governing the operation of regulated markets. MiFID extends the coverage of the current ISD and introduces new and more extensive requirements.
“Meeting MiFID’s regulatory requirements will be a challenge, but the difficulties should not prove insurmountable, and financial institutions that implement the MiFID rules early will reap significant rewards”, says Pete Stock, Managing Director, SDLC Solutions.
“Because of our relationship with a number of UK financial institutions, SDLC Solutions recognised the ambitious nature of this initiative and immediately responded by joining MiFID’s Joint Working Group - a pan-European alliance of financial services organisations created to address the technology-related aspects of the directive.”
An example of the impact: conduct of business, or ‘best execution’
A central theme of MiFID is the requirement to prove ‘best execution’, which will lead to the identification, collection, storage, manipulation, collation and presentation of data. Consider how your organisation is going to cope. Have you got enough storage? How will you handle the interfaces? Will your current presentation layer deal with the results? How will you test all the permutations? This is just one example.
Clearly, you need a clear strategy, a risk-based testing approach and some automation. You will also need to perform capacity analysis and prediction and performance analysis which should be built into your development lifecycle.
How is your organisation going to view the changes?
You might view MIFID as a challenge or a financial drain on the business. Or maybe it is an opportunity to target new markets, or totally remodel the way you do business?
Developing the strategy and building the business case
However you approach it, a credible testing partner is crucial. Firstly, because of the need to build in quality, harness the business requirements and deliver efficiency. Secondly, and more simply, because timescales are tight and you may need flexible resource supplementation. SDLC can be that partner, bringing our expertise in business analysis, corporate governance and quality assurance. More importantly, SDLC Solutions has a reputation in the industry for having just those collaboration and communication characteristics that you need to make sure your organisation reduces the risk and maximises the opportunities that MIFID poses.
SDLC Solutions – covering all the angles
As the UK’s leading independent systems and software testing provider, SDLC has an excellent reputation for the delivery of innovative solutions to our many clients which include FTSE 100 companies, government departments and multi-national systems integrators.
As a member of MiFID’s Joint Working Group, we are at the epicentre of the effort. We know the tight deadlines are going to make implementation difficult, but we are ready to rise to the challenge and help you to view MiFID as a potential opportunity.
You can rely on us to ‘cover all the angles’ and perform any number of manoeuvres to ensure your business applications are delivered on time and within budget.
To find out how our business can help yours, contact SDLC Solutions on 01625 521093 or email info@sdlcsolutions.com
