Testing MiFID
There is an amusing if slightly dated article on MiFID at Silicon,com - some extracts are shown below.
What have giant killer plants got to do with technology?
You're thinking of Triffids. MiFID stands for the Markets in Financial Instruments Directive. Having said that, the way some companies are reacting, you'd think they were being chased by roving mutant vegetables. But if they aren't careful, some firms might feel its sting.
What's the big idea?
The directive will allow companies to provide services across borders and establish branches in other European states. It also does away with the idea that all share trading had to be done through exchanges. Many banks deal 'off-book' which means they shift shares they are already holding between the customer that want to buy and sell, which is easier than going through the exchanges.
Sounds okay so far. Where does the IT come into this?
Firms will have to be able to prove 'best execution' on deals - which is likely to have to take into account issues such as price, venue, cost and speed. And they will have to keep records for five years.
Lots of the firms that currently trade off-book just don't have the systems to record and store this information and prove that they are providing best execution.
Firms will also have to publish much more information than before which will mean new communications infrastructure. And they'll have to build new business processes to deal with all this. Analysts are predicting £10m for IT and £12m for new processes - costing the industry around £1bn.
I'd rather fight some killer plants instead
Many investment banks would agree.
Software testing MiFID compliance
posted by Software Testing Blog @ 10:24 am
