The Markets in Financial Instruments Directive’s revisions has introduced complex regulatory and operational burdens. By way of example, the likely outcome of the Double Volume Cap mechanism introduced by MiFID II is further market fragmentation across Europe, accompanied by liquidity and performance measurement challenges arising from the proliferation of the Systematic Internaliser Regime.
To offer efficient solutions compatible with the advent of the new regulations, Mirabaud Securities has enhanced its execution offering by launching a highly sophisticated electronic trading platform. Employing a wholly unbiased routing infrastructure, Mirabaud is able to offer exceptional client performance by integrating its market structure expertise into the core of its proprietary liquidity seeking strategies.
“MiFID II has introduced an entirely new set of obstacles for our clients, particularly in the areas of execution and liquidity management,” said Jason Rand, Global Head of Trading at Mirabaud Securities. “Innovation is crucial in this environment and we have made it our top priority to equip our clients with an electronic trading platform that greatly enhances their execution performance and liquidity sourcing capabilities.”
With preparations for the incoming regulations expected to exceed USD 2 billion in 2017 alone, fund managers are increasingly outsourcing all or part of their trading functions to third party service providers, thereby increasing operational efficiencies. This model has secured significant traction in the US and is gaining foothold in Europe. Allowing managers to centralise their trading activities whilst simplifying the management of broker relationships and keeping costs under control is proving to be an attractive proposition.
“Whether it’s offloading operational risk, reducing overheads, securing access to new trading technologies, or leveraging the expertise of an experienced trading desk; the outsourced dealing model offers true flexibility and transparency,” added Rand. “Our clients benefit from global market access and 24-hour coverage via a broker-neutral platform.”
The central challenge for banks and asset managers is finding a capable provider that is dedicated to delivering a sustainable service model. Mirabaud Securities believes successful outsourced dealing firms will need to take a “full service” approach to ensure the entire spectrum of client objectives and needs are met.
“Outsourced dealing continues to be one of our fastest growing segments. Combined with our extensive execution services suite and ability to deliver high quality, cost-effective services, we fully expect that trend to continue well into 2017,” concluded Rand.