MiFID
requires that firms expose their order execution
policies to clients and make them auditable for
the regulator. This means providing appropriate
justification for the execution venue selected
for an order and then substantiating it with secure
regulatory reporting. Organisations will need
to execute these policies with flexible business
rules so that best execution can be demonstrated
based on cost, speed, likelihood of settlement
and clearing etc.
It is also argued that the competitive pressures
introduced by MiFID could lead to the redesign
of front office processes as firms attempt to
automate procedural activities and consolidate
resources around added value functions. The focus
on auditable process and cost efficiencies will
also drive many organisations to improve straight-through
processing (STP) rates. The complexity and volume
of the market are making manual processes unsuitable
and expensive.
MiFID
requires that firms expose their order execution
policies to clients and make them auditable for
the regulator. This means providing appropriate
justification for the execution venue selected
for an order and then substantiating it with secure
regulatory reporting. Organisations will need
to execute these policies with flexible business
rules so that best execution can be demonstrated
based on cost, speed, likelihood of settlement
and clearing etc.
