MiFID II Record Keeping

MiFID II Record Keeping for modern markets

While MiFID I offered some flexibility on record keeping, MiFID II is far more stringent. MiFID II’s record keeping requirements state that all communications that relate to the “reception, transmission and execution of client orders” need to be recorded.

MiFID II states that it is mandatory for firms to record all telephone calls and electronic communications that might result in a transaction. This must be done regardless of whether or not the transaction is actually completed.

These rules – laid out both in MiFID II and the accompanying MiFIR – are designed to increase market transparency and protect against insider trading and market abuse.

mifid ii record keeping requirements

The record keeping requirements laid out in MiFID II insist that great care is taken to keep close records of all relevant communications. Firms are required to take the following actions as of January 2018:

 

Minutes or notes should be used to record face-to-face conversations. ESMA states that firms will need to keep records on the date and location of meetings, the identites of the people in attendance, and all relevant information on the proposed transaction. MiFID II deems these conversations to be equivalent to orders received by telephone.

All communications regarding transactions will need to be stored for a minimum of 5 years – a substantial increase from the current period of 6 months. They must be held on record for up to 7 years If requested by an NCA (National Competent Authority). Records should be made available to clients on request.

The records must be easily retrievable and fully monitored. There is an industry-standard time frame of 72 hours – it must be possible to retreive all records within this time frame. 

A crucial part of the MiFID II record keeping requirements is that the records cannot be manipulated or altered. Since the data relating to trade and communications is so sensitive, it must be stored in WORM (write once, read many) format, which is considered to be fully tamper-proof.

Market Abuse, Insider Trading and the European Energy Market

Europe's Energy Regulators Tackle Market Abuse and Insider Trading In an attempt to increase investor protection and promote market integrity, a number of European energy regulators have joined together to tackle market abuse and insider trading in the European wholesale energy market. In the...

ESMA Calls for Report On MiFID II Inducements Discolsure Requirements

ESMA Calls For European Commission To Report On Impact of Inducements Disclosure Requirements Under MiFID II As stated in a press release published on July 17, the European Securities and Markets Authority (ESMA) has requested that the EC (European Commission) provide evidence of the impact caused...

MiFID II Inducements: How Should You Handle Them?

Inducements Under MiFID II MiFID, the Markets in Financial Instruments Directive, is a fundamental part of the financial law in the European Union. It sets out standards for investment services and activities across the EU, although its influence stretches beyond European borders. Last year’s...

Trade Reporting vs Transaction Reporting: What’s the Difference?

Trade Reporting and Transaction Reporting Under MiFID II In January of 2018, the updated framework of Markets in Financial Instruments Directive (MiFID II) was rolled out, marking one of the biggest overhauls to Europe’s financial industry in decades. The new legislation, updated from 2007’s...

Financial Times UK Warns Financial Advisors of Fake Bitcoin Email Campaign

Fake Bitcoin Email Campaign Imitates FCA Branding Con artists will try anything to make their schemes appear legitimate to unwitting victims. In a recent email doing the rounds to financial advisors, scammers have been impersonating the UK‘s Financial Conduct Authority (FCA) luring victims into a...

Our MiFID II Record Keeping Solution

eflow will allow your firm to stay on top of all of MiFID II’s stringent record keeping regulations.

ESMA states that firms must keep records on the following:

  • Orders.
  • Both scheduled and completed trades.
  • All communications. These include phone calls, faxes, messages, emails and physical mail.
  • Documentation. This includes research, minutes of meetings, sales and marketing communications.

eflow will simplify all these forms of record keeping, allowing your firm to rest assured that they are compliant with MiFID II’s record keeping legislation.

eflow ensures that all data storage fully conforms to the standards of WORM (Write Once Read Many). This means that sensitive information will be kept fully secure for your staff members and clients.

Search and retrieval is flexible and instant, and it’s easy to extract information, so you can keep to the strict regulatory time frames set out in MiFID II. All data is written to disk, and storage is digital and completely immutable.

Contact Info

Sales Enquiries

+44 (0) 207 101 4493
sales@eflowglobal.com

Service Support

+44 (0)117 373 6251
support@eflowglobal.com



Privacy Policy
© Copyright 2019 eflow Ltd.

Get in touch
Call us: +44 (0) 207 101 4493
Email: sales@eflowglobal.com