January 18, 2018
Symphony is the cloud-based messaging and collaboration platform that connects markets, organizations and individuals, securely.
How can I maintain MiFID II compliance?
MiFID II was introduced to increase transparency of markets, lower market data costs, improve execution, and more. It will also entirely change the way financial institutions conduct business. Symphony has features like timestamp granularity, which will show you who has read your messages and when, as well as content export, which allows you to export all conversation history. These features will help you maintain compliance with MiFID II.
Trading teams can leverage Symphony in several ways:
- Rather than using a series of phone conversations, a sales trader sends an embedded IOI form via Symphony message to a desk trader. This reduces fragmented conversations, risk of transcription error, and amount of time spent switching between phone and desktop.
- The desk trader receives a notification via Symphony and can accept the IOI in real time. Once he does, a chat room is created and named with the Trade ID. This streamlines the process of receiving an IOI, taking action, and tracking progress.
- As both parties negotiate a price, all conversation history is recorded and archived with timestamp granularity. This creates an audit trail and ensures accurate recording.
- Conversation history can be exported to demonstrate best execution tactics. As an alternative, the room can send notices to dedicated compliance software for real-time monitoring of pre-trade negotiations. Having this data increases transperancy of the transaction.
The flow above illustrates how an IOI can be negotiated and accepted by multiple parties while being tracked via Symphony.
For more information about how Symphony can facilitate MiFID II compliance, please contact your Symphony representative.
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