MiFID II Record Keeping

Regulatory compliance 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.

Under MiFID II, it is mandatory for firms to record all telephone calls and electronic communications that might result in a transaction – regardless of whether the transaction is actually completed.

MiFID II Record Keeping

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

 

For face-to-face conversations, minutes or notes should be used to record them. 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 five years – a substantial increase from the current period of six months. If requested by an NCA (National Competent Authority), the communications may need to be kept for up to seven years. Records should be made available to clients on request.

The records must be easily retrievable and fully monitored, for access and reporting to relevant regulators in the industry standard 72-hour 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.

In order to comply with new MiFID II record keeping requirements, firms are nowrequired to retain additional information on services, activities and transactions. Stay on top of these strict record keeping regulations with eflow.

Record Keeping Requirements

With eflow, your firm will be able to stay on top of all of MiFID II’s stringent record keeping regulations.

ESMA states that, under MiFID II, firms must keep records on the following:

  • Orders
  • Trades, whether scheduled or completed
  • Communication, including phone calls, faxes, messages, emails or physical mail
  • Documentation, including research, minutes of meetings, sales or 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.

With the eflow product, all data storage fully conforms to the standards of WORM, meaning that sensitive information is fully secure for your firm and your 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.

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a demonstration, get in touch.

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