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With more than 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centres and offices in 16 countries, DTCC, through its subsidiaries, automates, centralises and standardises the processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers.

The upcoming revision to the Markets in Financial Instruments Directive (MiFID II) will affect several key areas of the post-trade process:

• Changes to derivatives trading – MiFIR, the pan-European regulation that accompanies MiFID II, will include new obligations in transaction reporting to facilitate market surveillance and detect market abuse in the derivatives markets

• The adoption of Legal Entity Identifiers (LEI) – MiFID II will introduce the concept of ‘no LEI, no trade’. From 2018, investment management firms subject to MiFID II transaction reporting obligations should not execute a trade on behalf of their clients who are eligible for an LEI and do not have one. MiFID II will require parties involved in all financial instrument transactions to include the entity’s LEI when reporting to the competent authority

• The unbundling of research costs – MiFID II will enforce the unbundling and transparency of payment for sell-side research. Payments using execution commission will be defined as an inducement and will be prohibited.

DTCC is focused on helping clients mitigate the impact of regulatory compliance through its solutions: Global Trade Repository (GTR), Global Markets Entity Identifier utility (GMEI utility), ALERT and Central Trade Manager (CTM). To find out more visit www.dtcc.com/mifidii