28 May 2018
Visit response.ncr.com

MiFID II delays helping firms reduce tech debt

17 May 2016  |  4909 views  |  0 MiFID on brick wall background

Delays in the publication of Regulatory Technical Standards (RTS) for MiFID II are having a positive side effect - incentivising financial services firms to take on major system overhauls in a bid to reduce their technology debt, claims a paper from GreySpark.

GreySpark argues that new regulations such as MiFID II normally increase 'tech debt' - inferior aspects of the technology environment - because firms are forced to rush to meet tight compliance deadlines without focusing enough on the knock-on effects.

The rush of new regulations introduced since 2009 has seen firms resort to "tactical bolt-on or hack-based fixes to existing software platforms as opposed to the application of the organisational effort required to redo those platforms completely," says GreySpark.

But the RTS delay is giving banks and buyside firms breathing space to think holistically about their technology upgrades, with many taking the opportunity to eliminate their tech debt balance by replacing legacy, siloed data management, data processing, risk management, reporting, compliance and client-facing systems with new, streamlined systems.

GreySpark cites one Tier 1 bank which has recently replaced a plethora of semi-golden sources and multiple reporting systems per business line with one, cross-organisational data warehouse and a fully customisable reporting engine.

Says the paper: "Therefore, from a technology perspective, the one-year delay in MiFID II’s implementation may bring benefits to those companies that were already proactively working to disavow the compliance gap."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Investment banks facing new industrial revolution - GreySpark

Investment banks facing new industrial revolution - GreySpark

04 April 2016  |  8512 views  |  1 comments | 13 tweets | 11 linkedin
Commission forces Esma back to the drawing board over MiFID II reforms

Commission forces Esma back to the drawing board over MiFID II reforms

17 March 2016  |  9751 views  |  0 comments | 11 tweets | 24 linkedin
European Commission confirms MiFID II delay

European Commission confirms MiFID II delay

10 February 2016  |  17005 views  |  1 comments | 22 tweets | 26 linkedin
Europe reaches agreement on MiFID reforms

Europe reaches agreement on MiFID reforms

15 January 2014  |  8908 views  |  1 comments | 6 tweets | 5 linkedin

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.com/news/mobile-firstVisit www.niceactimize.com

Who is commenting?

Top topics

Most viewed Most shared
satelliteAnt Financial provides tech for China Ever...
37076 views comments | 3 tweets | 2 linkedin
Digital banking transformation creating new systemic risksDigital banking transformation creating ne...
9353 views comments | 18 tweets | 26 linkedin
ING opens developer portalING opens developer portal
7979 views comments | 18 tweets | 23 linkedin
MUFG to roll out blockchain payment network next yearMUFG to roll out blockchain payment networ...
7942 views comments | 13 tweets | 13 linkedin
PayPal and Google bind payment railsPayPal and Google bind payment rails
7631 views comments | 11 tweets | 17 linkedin