S7C MiFID II: Regulatory, Risk, and Compliance Training Programme©

This intermediate to advanced level training programme will provide attendees with comprehensive training in all the latest updated Markets in Financial Instruments Directive (MiFID II) regulatory, risk, compliance and implementation issues affecting financial services firms in the European Union (EU). Attendees will be guided in detail through the latest MiFID II and Markets in Financial Instruments Regulation (MiFIR) operational frameworks, 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 programme will provide extensive guidance on the new MiFID II provisions affecting over-the-counter (OTC) and commodity derivatives trading, algorithmic trading, and dark trades and dark pools. The programme can be specifically tailored to meet a company's training needs by allowing companies to choose from a diverse range of 10 Modules covering MiFID II operational frameworks. A company can opt for either a 1 day (4 Modules) or a 2 day (8 Modules) training programme.

Days 1 to 2

MODULE 1: An Introduction to the New MiFID II Operational Framework

  • 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).

MODULE 2: Market Structure, Trade Reporting and Transaction Reporting

  • 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: Transparency, Position Limits and Position Reporting

  • Increased competition; enhanced supervisor powers; liquid market for equity and equity-like instruments; equity waiver caps; non-equity pre-trade and post-trade transparency.
  • Position limits, position reporting and ESMA's new position management powers.

MODULE 4: Organisational Requirements, Conduct of Business Rules and Investor Protection

  • 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.

MODULE 5: The Third Country Firm Framework

  • 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.

MODULE 6: Over-the-counter (OTC) and Commodity Derivatives

  • 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: Liquidity, Algorithmic Trading, and Dark Pools

  • 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.

MODULE 8: MiFIR Reporting Framework

  • 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: Use of Technology and Software in MiFID II Compliance Programs

  • 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 technology-based solution.
  • Assessing the use of third party services for MiFID II reporting and compliance.

MODULE 10: The Operational Impact of MiFID II and Strategic Analysis

  • 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).

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