MiFID II Compliance

Record Keeping Requirement

MiFID II requires financial organsations to record all communication methods, including voice, email, chat, social media, SMS, any related documentation and OMS. Not only must the communication with the end customer be recorded, but also the internal communication. The original files must be stored in a data vault for 5-7 years. When requested by the regulator or a customer, the complete communication chain must be reconstructed in a timely manner.

All this poses major challenges, as all of the original communication files, OMS and documents must be kept encrypted, protected and with an audit trail in a data vault. Furthermore, the data must be easy to retrieve in a case or investigation. It’s not enough to archive files if the compliance team can’t complete investigations in a timely manner with minimal disruption and effect on the business.

The Shield FC record keeping platform is specifically designed to solve these two challenges in an agile, cost-effective and productive way. Shield FC connects easily to relevant structured and unstructured data sources for storing all original files in the data vault. By using Shield FC’s porta l, Compliance Officers can manage and perform investigations across all platforms using one single interface.

Best Execution Requirement

MiFID II RTS 27 requires financial organisations to “Take all sufficient steps to obtain, when executing orders, the best possible result for their clients taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order”.

This requires financial organisations to report on any transaction and make the details available for the public under the new Best Execution requirements. This does not pose a problem for structured digital trades, but is a huge challenge for monitoring and reporting voice trades, or any trade/  RFQ involving unstructured communication, e.g., voice, SMS, WhatsApp email etc.

The Shield FC Best Execution platform connects automatically to all relevant channels for extracting Best Execution info rmation from voice calls etc. and inserts it into the Best Execution reporting platform.

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