MiFID II In-House Training Course

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Storm-7 Consulting (Storm-7) have developed a unique modular In-House Training Course covering the EU’s Markets in Financial Instruments Directive II (2014/65/EU) (MiFID II) and the Markets in Financial Instruments Regulation (No 600/2014) (MiFIR).

MiFID II and MiFIR are currently being implemented in the EU in order to formulate a new level playing field for financial services firms. The Directive is currently expected to come into force in January 2018. MiFID was originally implemented in 2004.

Following the global financial crises in 2008, however, it was decided to update and extend the scope of original directive. In 2011 a period of consultation began, which lead to the release of the draft MiFID II text in 2014.

Implementation of MiFID II has been delayed for a number of reasons.. Based on our conversations with sizeable organisations and media reporting firms, it is evident that the complexity, scope and depth of MiFID II is causing major issues to organisations throughout the European finance industry who are now required to achieve operational compliance.

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The new Directive references controls on: (1) Market infrastructure framework; (2) Increased equity market transparency; (3) Strengthened supervisory powers; (4) Framework for competition in the trading and clearing of financial instruments; (5) Trading controls for algorithmic trading activities; (6) Stronger investor protection; (7) Effective and harmonised administrative sanctions; and (8) Harmonised regime for allowing firms from third countries to access EU markets.

The new Directive has implications for banks, building societies, investment firms and their qualifying parent undertakings (financial holding companies and mixed financial holding companies), as well as credit institutions, investment firms and their subsidiaries. It also has implications for organisations operating in currently non-regulated sectors such as commodity derivatives and oil trading.

In practice, MiFID II affects all aspects of an organisation’s operations, which is resulting in many organisations struggling to fully understand the requirements and achieve compliance. Given this situation, we believe it is highly appropriate for Storm-7 to introduce a high quality training programme which comprehensively covers all aspects about the MiFID II and MiFIR regulatory compliance frameworks. Our regulatory experts are adaptable to the needs and requirements of our clients and partners, and are happy to modify the leading content used in the conference to meet the requirements of your one day event.

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This extended intermediate to advanced level modular programme will provide attendees with comprehensive training in the latest MiFID II operational compliance and implementation issues.

Attendees will be guided through the latest MiFID II operational framework in detail, and will be provided with a critical and explanatory review of the latest draft Level 2 texts published by the European Securities and Markets Authority (ESMA).

The training course can also provide extensive guidance on new specialist MiFID II provisions affecting over-the-counter (OTC) and commodity derivatives, algorithmic trading, dark trades and dark pools.

The training course seeks to provide advanced training on MiFID II for middle to senior managers and directors working within the banking, finance, capital markets, and financial services sectors.

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The objective is to provide an overview and insights into some of the key aspects of the MiFID II and MiFIR European Union (EU) frameworks.

The training course is modular in nature which allows firms to specifically tailor the training course to their specific training needs and existing levels of understanding.

The MiFID II Operational Compliance In-House Training Course is more than just about knowledge and training, it seeks to provide attendees with advanced strategic insight into new MiFID II operational technologies.

It can also provide firms with greater insight into MiFID II technology and software solutions (e.g. Approved Reporting Mechanism (ARM) offerings, Recording of Communications technology offerings, Best Execution technology offerings), how to strategically leverage MiFID II to save costs and gain benefits, and insights into next generation MiFID II analysis technologies.

MiFID II is not just about compliance, it represents a key opportunity for firms to strategically differentiate themselves and capitalise on new and emerging financial markets.

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• Attendees will be updated on MiFID II business strategies for financial services firms (e.g., minimising operational losses on Return on Equity, changing strategic business directions, minimising the MiFID II negative impact on future profitability); identifying new post-MiFID II ‘hot’ target markets; and EU market capitalisations strategies (high negative impact on cost-income ratios, Third-Country Firm passporting, SME growth markets).

• Attendees will be comprehensively instructed on all the major changes ushered in by the MiFID II framework, including market structure, trade and transaction reporting, position limits and reporting, algorithmic trading, dark pools, third country frameworks, organisational requirements, investor protection, and compliance technologies.

• Attendees will be updated with the latest and most relevant MiFID II regulatory issues and ESMA technical standards affecting financial services firms in the EU, as well as insights into how to optimise and leverage MiFID II regulatory compliance frameworks.

• Attendees will be updated on MiFID II business strategies for financial services firms (e.g., minimising operational losses on Return on Equity (ROE), changing strategic business directions, minimising the MiFID II negative impact on future profitability) and EU market capitalisations strategies (high negative impact on cost-income ratios, Third-Country Firm passporting, SME growth markets).

• Attendees will learn how MiFID II will affect financial services firms from legal, financial, operational, technological and strategic perspectives.

• Analysts • Chief Technology Officers • Collateral Management Function • Compliance Managers • Compliance Officers • Corporate Risk Managers • Credit and Legal Professionals • Dealers • Heads of Compliance • Heads of Operations • Heads of Risk • Risk Managers • Risk Officers • Technology Officers • Treasury Function

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We are a financial consultancy company that provides premier financial intelligence and knowledge to leading financial institutions around the world. We deliver premium quality conferences on cutting-edge legal and financial issues, and strive to provide access to crucial insight by leading experts on the latest complex regulatory developments. We specialise in creating and delivering conferences, events, and training courses focused within the banking, financial services, Financial Technology (FinTech), and Regulatory Technology (RegTech) sectors. We are experts at creating and delivering conferences and events around the world. We are ideally placed to deliver extremely high quality conferences, events, and training courses. We have created and delivered conferences, events, and training courses at the very highest level. Our clients include world-class leading institutions, Tier 1 firms and industry giants.

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Investment Partners, Deutsche Bank, Erste Group, Sparkasse Bank Malta, Millennium Information Technologies, Enel, Clearsettle, Objectivus Financial Consulting, D2 Legal Technology, OTC Partners New York, Acquis Exchange, BT Smartnumbers, Sybenetix, Gulf International Bank, Astellon Capital, Cognizant, Accenture, John Hancock, ICBC Standard Bank, NBK Capital, AB Maximus, Lazard Asset Management, Rennaissance Capital, GT Bank, Stuart Walker Cayman Law Firm, Garanti, E&I Shipping and Trading, ABN Amro, FDIC, Total, Desjardins, Kreab, Deutsche-Boerse, FNO.NO, Barclays Investment, JS Bank, ADM Investor Services, CAF, Woodbridge Funds, Enel, Hyannis Port Research, Standard Life, Celdes S.R.L., IFA Global, Raiffeisen Bank International AG, BGC Partners, Fresenius SE & Co. KGaA, Bartonheyman, Lloyds Banking Group, MS Amlin, Nucleus Financial, Islamic Bank, Citadel, Petrus Private Bank Consumers National Bank, Clearsettle, and more.

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MODULE 1:

MODULE 2:

• An Overview of the MiFID II and MiFIR regulatory framework, technical standards, projected Impacts, and timelines, • Impact on commodity derivatives and firms, position limits and reporting, extended range of financial instruments.

• Extended regulatory powers, data reporting services, Third Countries, Organised Trading Facilities (OTFs).

• Aligning EU regulation; Level Playing Field; OTFs; Multilateral Trading Facilities (MTFs); Systemic Internalisers (SIs); SME markets.

• Best-execution and execution only reporting; extended scope of reported transactions; flags; Approved Reporting Mechanisms (ARMs); third party inducements; data publication; consolidated tape and consolidated tape providers.

MODULE 3 :

MODULE 4 :

• Increased competition; enhanced supervisor powers; liquid market for equity and equitylike instruments; equity waiver caps; nonequity pre-trade and post-trade transparency.

• Position limits, position reporting and ESMA’s new position management powers.

• Client classification and eligible counterparties; investment suitability and appropriateness.

• Product governance; product approval processes; managing bodies; membership selection and suitability requirements; registration and authorisation; market operators; sales targets and remuneration policies.

• Independent advice; conflicts of interest; third party inducements; commissions; third party research.

• Exemptions; compliance function; record keeping; best execution; and execution only.

An Introduction to the New MiFID II Operational Framework

Transparency, Position Limits and Position Reporting

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Market Structure, Trade Reporting and Transaction Reporting

Organisational Requirements, Conduct of Business Rules and Investor Protection

FOUR MODULES CAN BE DELIVERED PER DAY OF IN-HOUSE TRAINING.

MODULE 5:

MODULE 6:

• Third country financial institutions; EU Commission equivalent assessment; third country trading venues; third country entity trading obligations; Passporting and comparable levels of investor protection.

• Third Country provisions and the ESMA Deemed Equivalence application process.

• Third Country Firm legal and taxation considerations for choice of branch or subsidiary.

• Analysing the Level II implementing measures and curtailment of available exemptions.

• Revised financial instruments (emission allowances, OTF physically settled contracts).

• Position limits and position reporting to ESMA. • Regulation on Energy Market Integrity and Transparency (REMIT) and Markets in Financial Instruments Regulation (MiFIR) equivalence transaction reporting.

MODULE 7:

MODULE 8:

Liquidity, Algorithmic Trading, and Dark Pools

MiFIR Reporting Framework

• The latest MiFID obligations for automated trading in the EU (authorisation, market making, venue pricing, order-to-trade ratios).

• Execution algorithms and proprietary trading strategies adopted by high-frequency traders.

• Liquidity, high-frequency traders, and dark trades.

• MiFID II dark trading caps (reference price waiver, negotiated trade waiver) and exemptions (large in scale waiver) and the impact of MiFID II liquidity requirements on risk management policies.

• MiFIR reporting obligations, classification of investment firms, new reportable instruments, extended transaction report fields, Legal Entity Identifiers (LEIs).

• Client identification standards, Algo Flagging, and global data protection issues.

• Comparing key elements of the EU transaction reporting regimes (European Market Infrastructure regulation (EMIR), REMIT, Securities Financing Transactions Regulation (SFTR)).

MODULE 9:

MODULE 10:

• The impact of MiFID II on financial institution internal processes.

• MiFID II gap analysis, risk analysis, and process and procedure mapping.

• Consolidating global financial regulatory compliance obligations into one technologybased solution.

• Assessing the use of third party services for MiFID II reporting and compliance.

• MiFID II strategies for financial services firms (minimising operational losses on Return on Equity (RoE), changing strategic business directions, minimising the MiFID II negative impact on future profitability).

• Conduct Management and Client due diligence and monitoring requirements for direct electronic access (DEA) firms.

• Algorithmic trading parameters, exclusions, disclosure risks, and business models.

• EU market capitalisations strategies (high negative impact on cost-income ratios, Third-Country Firm passporting, SME growth markets).

MIFiD II and the Third Country Firm Framework

Use of Technology and Software in MiFID II Compliance Programs

Over-the-counter (OTC) and Commodity Derivatives

The Operational Impact of MiFID II and Strategic Analysis

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MODULE 11:

MODULE 12:

• MiFID II ‘Heat Map’ to show how EU jurisdictions will be affected by MiFID II, and which EU jurisdictions are top ranked for external investment.

• Identification of the interaction of MiFID II with other regulatory compliance frameworks to show how firms will be affected and which areas are ripe for investment.

• Showcase of a range of MiFID II investment strategies for investment firms and private equity firms.

• Unique analysis of predicted development of MiFID II, PRIIPs, and PSD2 to highlight potential investment areas and strategies.

• A legislative requirements analysis of MiFID II and the unbundling of research commissions.

• A strategic review and analysis of Research Payment Accounts, Broker Voting, Commission Sharing Agreements.

• A review of new Research Platform Operational Models and Research Marketplaces.

• A review of MiFID II Research Technology Providers.

MODULE 13:

MODULE 14:

• MiFID II Requirements for Assessing Suitability (Client’s Knowledge and Experience, Financial Situation, Investment Objectives).

• MiFID II Requirements for Assessing Appropriateness (Types of Financial Service; Nature, Volume and Frequency of Client’s Transactions).

• Comprehensive Analysis of the Guidelines for the Assessment of Knowledge and Competence.

• MiFID II Suitability and Appropriateness Operational Requirements (Recommendations, Ability to Bear Losses, Multiple Client Entities, Suitability Reports, Recordkeeping).

• An Analysis of the MiFID II and the Recording of Communications Framework.

• MiFID II Investment Firm Client Obligations and Investment Firm Organisational Requirements.

• The Top Ten Recording of Communications Strategic Considerations for MiFID II Investment Firms.

• A Review of MiFID II Recording of Communications Technology Offerings.

MODULE 15:

MODULE 16:

MiFID II Investment Strategies

Suitability and Appropriateness

MiFID II Best Execution • MiFID II Best Execution Substantive Provisions for MiFID II Firms.

• Internal MiFID II Best Execution Operational Monitoring Systems.

• MiFID II Best Execution and a New Approach to Transaction Cost Analysis.

• A Review of MiFID II Best Execution Technology Offerings.

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Research Unbundling

The Recording of Telecommunications

The MiFID II Approved Reporting Mechanism Framework • Authorisation Procedures for Data Reporting Services Providers (DRSP).

• Requirement s for the Management Body of a DRSP. • Organisational Requirements for Approved Reporting Mechanisms (ARMs).

• A Comparative Strategic Analysis of ARM Providers.

MODULE 17:

MODULE 18:

• Authorisation Procedures for Data Reporting Services Providers (DRSP).

• Requirement s for the Management Body of a DRSP. • Organisational Requirements for Approved Publication Arrangements (APAs).

• A Comparative Strategic Analysis of APA Providers.

• Authorisation Procedures for Data Reporting Services Providers (DRSP).

• Requirement s for the Management Body of a DRSP. • Organisational Requirements for Consolidated Tape Providers (CTPs).

• A Strategic Analysis of the CTP Framework.

The MiFID II Approved Publication Arrangement Framework

The MiFID II Consolidated Tape Publication Framework

MODULE 19:

MODULE 20:

• MiFID II Third Country Cooperation Agreements.

• MiFID II Research Unbundling Key Considerations for Third Country Firms.

• The Top Ten MiFID II Strategic Considerations for Third Country Firms.

• Third Country Firm Strategic Approach to MiFID II.

• Real time identification of regulatory compliance frameworks and mapping to company obligations.

• Identification of common areas and potential conflicts across a range of regulatory compliance • frameworks (e.g. MiFID II, PRIIPs, UCITS V, Basel III, EMIR, GDPR, AIFMD, SFTR).

• Provision of practical step-by-step guidelines to ensure internal firm regulatory compliance dependent on activity, geography, and size.

Key MiFID II Considerations for MiFID II Third Country Firms

Using Artificial Intelligence and Machine Learning to Identify and Analyse MiFID II Requirements

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www.storm-7.com UK +44 (0) 20 7846 0076 client.services@storm-7.com storm_7_consult Storm-7 Consulting Storm-7 Consulting level 24/25, The Shard, 32 London Bridge Street, London SE1 9SG Š Copyright 2017 | Storm-7 Consulting | All Rights Reserved 14