Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

BRICKNODE HELPS BROKERS AND ASSET MANAGERS BECOME MIFID II COMPLIANT

The implementation of MiFID II is getting closer day by day and financial institutions are scrambling to stay compliant and understand what they need to do. As usual regulatory changes is creating confusion among the involved parties and Bricknode are launching initiatives to help.

At Bricknode the goal is to make the transition to MiFID II as easy as possible by automated solutions for customers that use Bricknode Broker.

How does the investor protection regulations change?

An important change with MiFID II is the ban on receiving and keeping rebates from third parties in conjunction with delivering the investment services portfolio management and so called independent investment advisory. It is ok as long as the rebates are forwarded on to the customer which can be accomplished with the add-on apps in the Bricknode Marketplace.

The investor protection regulations are also updated to cover so called structured deposits. The investment service “execution of orders” is changed to include the conclusion of agreements to sell financial instruments issued by the securities firm itself, that is with regards to its own issues.

Financial instruments

The definition of financial instruments has been changed to include emissions allowances among other things.

How is the transaction reporting expanded?

TRS-reporting is expanded to include information regarding customer id and the person or algorithm at the securities firm that made the investment decision. In Bricknode Broker this will mean that we will add more properties that can be defined for an order event with the possibility to configure default information and also access these through our API.

The reporting should also include information with regards to short selling and what is called LEI-numbers for companies. LEI-number is the new type of international company numbers and is already available as a property for companies in Bricknode Broker.

ESMA has developed guidelines with regards to TRS-reporting which includes the following:

More transaction types that should be reported.

  • Subscriptions made in the primary market
  • Gifts and heritage
  • Transfers to other institutions
  • Certain corporate actions

More information is to be reported

  • The owner/owners of the account where the transaction happened
  • Who made the decision
  • Who made the decision within the firm
  • Shorting
  • Etc.

Declarations of goods by using KIDs

By using so called Packaged Retail and Insurance-based Investment Products (PRIIPs) numerous types of financial instruments has to be accompanied by standardized declarations called Key Information Document (KID). In Bricknode Broker we have links already to KIDs which in some cases are populated automatically by the supplier or trading route like for example MFEX.

Seminar about MiFID II with Bricknode and Gernandt&Danielsson

During September Bricknode will host a seminar with Gernandt&Danielsson in Stockholm for Bricknode customers where details regarding the changes will be relayed. The invite will be sent well in time for the seminar so keep an eye out in your inbox if you are a Bricknode customer.