To read the full article in the Financial Director, click on the link here
PA Consulting Group’s Jan Hanika, a financial services expert, is quoted in Financial Director magazine talking about the European Union’s Markets in Financial Instruments Directive (MiFID II), which went live on 3 January.
The article notes that the new regulation will overhaul Europe's trading landscape, tightening the organisational requirements of investment firms and trading venues, and introducing extensive changes to reporting around transactions and transparency requirements.
In the article, Jan talks about the important role of Legal Entity Identifiers (LEIs), pointing out that "the regulation requires all entities trading in reportable financial instruments to have a valid Legal Entity Identifier (LEI) that is renewed on a timely basis. This is valid for all financial instruments that have either been traded or have an underlying asset traded on a trading venue."
Jan adds: "The LEI must be obtained from an official issuer but, because many participants have not yet registered for a valid LEI, there will likely be a large volume of last-minute registrations, which could delay the process to obtain a valid LEI. This could potentially result in some firms not being able to trade on behalf of a client who is eligible for a LEI and does not have one."
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