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MiFID II Industry Cost Analysis

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With MiFID II nearing implementation in January 2018, firms are becoming increasingly aware of the technology and data requirements needed to comply

 

 

Problems/Questions

Expand and IHS Markit, a world leader in critical information, collaborated to understand typical budgets for MiFID II in 2017. Additionally, Expand set out to understand how the sell and buy side industry allocated 2017 budgets across a broad portfolio of MiFID II requirements.

How Expand helped

The research was conducted by utilizing Expand’s extensive network of relationships with heads of technology, regulatory leads and compliance heads across the financial services industry. Over the course of two months, Expand interviewed over 70 buy-side and sell-side firms to understand 2016 and 2017 MiFID II budgets in granular detail.

This allowed Expand to understand exactly how large a proportion of MiFID II budgets is allocated towards technology, where the budget would be spent (build vs. buy) and which parts of the regulation were the key focus areas for firms. Alongside the quantitative analysis, Expand further analysed firms’ MiFID II governance and operating models to provide insight into core steering committee trends.

Outcome

Findings were presented to all participants of the study in a series debriefs across the globe, in many instances presenting to C-level executives from both technology and the business.

Additionally, Expand presented the findings at the annual IHS Markit Trading Services Seminar in front of over 100 buy-side and sell-side firms. Expand’s MiFID II study helped shape numerous firms’ MiFID II budgets for 2017 and also gave significant reassurance to firms on levels of preparedness throughout the industry.

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