Regulatory Compliance Project: MiFID II and EMIR Alignment

Tailored Solutions for FX, Interest Rates, and Equity Derivatives

Project Highlight
I have carried out a major single–firm regulatory alignment programme for two separate firms, covering FX, Interest Rates Derivatives and Equity Derivatives operations covering all aspects of MiFID II (Markets in Financial Instruments Directive II) and EMIR (European Market Infrastructure Regulation) compliance.

Scope of Work:
1. Regulatory Gap Analysis
- Assessment of current compliance status for both companies
- Identification of gaps in MiFID II and EMIR compliance
- Prioritisation of areas requiring immediate attention

2. Product Coverage
- FX Derivatives (spots, forwards, swaps, NDF)
- Interest Rate Derivatives (swaps)
- Equity Derivatives (swaps)

3. Key Compliance Areas Addressed
- Transaction reporting
- Trade transparency (pre-trade and post-trade)
- Best execution
- Product governance
- Client categorisation
- Trade reconciliation and dispute resolution

4. Operational Changes
- Workflow redesign to incorporate regulatory requirements
- System upgrades for enhanced reporting capabilities
- Implementation of new control mechanisms

5. Data Management
- Data quality assessment and improvement strategies
- Data storage and retrieval processes aligned with regulatory requirements
- Implementation of data protection measures

6. Training and Awareness
- Comprehensive training programs for staff across all levels
- Development of compliance manuals and guidelines

7. Implementation Strategy
- Phased roll-out plan customised for each company
- Testing and validation procedures
- Go-live support and post-implementation monitoring

Our Approach:
- Detailed regulatory impact assessment for each company
- Collaborative workshops with key stakeholders
- Customised solutions considering each company's unique structure and operations
- Continuous engagement with compliance and legal teams

Unique Features:
- Dual-company perspective, providing insights into different organisational challenges
- Integrated approach covering multiple asset classes
- Balancing regulatory compliance with operational efficiency
- Scalable solutions adaptable to future regulatory changes

Impact:
The project delivered:
- Fully compliant operations for both companies across all covered derivative classes
- Enhanced reporting capabilities and data management processes
- Improved risk management and client service aligned with regulatory requirements
- Streamlined workflows incorporating regulatory checks and balances

This joint project ensured compliance with MiFID II and EMIR and optimised each company for future operational efficiency and risk management. The bespoke approach addressed each company's peculiarities and leveraged our broad experience of best practices in regulatory compliance.

Do you need help ensuring that your derivatives operations comply with current regulatory requirements? Contact us to find out how our offerings can protect your business and optimise your operations.