Mifid II  

Managers not yet ready for Mifid II

Managers not yet ready for Mifid II

Just 6 per cent of asset managers are ready for Mifid II, according to a poll.

A new survey has suggested that only 6 per cent of asset managers are ready to meet the new best execution analysis standards under Mifid II, while 61 per cent need to provide more granular detail to their policies.

Under the new standards, traders must be in possession of much more information during a trade.

Mifid II standards must be implemented in January 2018.

This survey showed that a third of companies are planning to make changes to trading workflow and more than a quarter are specifically investing in technology to ensure a more systematic approach to best execution. 

“Best execution no longer means a mere ‘look back and check’ on the outcome of an individual order.

"It is now the creation and implementation of a process that enables the trader to be in possession of as much valuable information as possible, throughout the lifecycle of a trade,” said Rebecca Healey, head of EMEA market structure for Liquidnet.

“This information allows traders to adapt execution strategies that protect against adverse market conditions, or benefit from opportunities as they arise.”

The results from this survey were based on 55 detailed interviews with heads of trading/dealing across Liquidnet’s member network of asset management firms throughout North America and Europe. Participants were polled during April and May 2017.

Adviser Philippa Gee, from Philippa Gee Wealth Management, said that the findings were “interesting but a little pre-emptive”, given that companies have a while to go before MiFID II comes into force. “Most companies are working through the changes right now, in preparation for the deadline. I expect to see a lot of positive movement in the remaining months.”