MiFID II In-House Training Course, Japan

MIFID II

In-House Training Course

JAPAN

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MIFID II Overview Storm-7 Consulting (Storm-7) have developed a unique modular In-House Training Course covering the EU's Markets in Financial Instruments Directive II (2014/65/ EU) (MiFID II) and the Markets in Financial Instruments Regulation (No 600/2014) (MiFIR). MiFID II and MiFIR are currently being implemented in the EU in order to formulate a new level playing field for financial services firms.The Directive came into force on the 3rd of January 2018.

MiFID was originally implemented in 2004. Following the global financial crises in 2008, however, it was decided to update and extend the scope of original directive. In 2011 a period of consultation began, which lead to the release of the draft MiFID II text in 2014. Implementation of MiFID II has been delayed for a number of reasons, with the latest schedule implementation date now being January 2018.

Based on our conversations with sizeable organisations and media reporting firms, it is evident that the complexity, scope and depth of MiFID II is causing major issues to organisations throughout the European finance industry who are now required to achieve operational compliance.

The new Directive references controls on: (1) Market infrastructure framework; (2) Increased equity market transparency; (3) Strengthened supervisory powers; (4) Framework for competition in the trading and clearing of financial instruments; (5) Trading controls for algorithmic trading activities; (6) Stronger investor protection; (7) Effective and harmonised administrative sanctions; and (8) Harmonised regime for allowing firms from third countries to access EU markets.

The new Directive has implications for banks, building societies, investment firms and their qualifying parent undertakings (financial holding companies and mixed financial holding companies), as well as credit institutions, investment firms and their subsidiaries. It also has implications for organisations operating in currently non-regulated sectors such as commodity derivatives and oil trading.

‘Mifid ii is a game-changer, and will affect banks and financial service firms around the world ‘

In practice, MiFID II affects all aspects of an organisation's operations, which is resulting in many organisations struggling to fully understand the requirements and achieve compliance. Given this situation, we believe it is highly appropriate for Storm-7 to introduce a high quality training programme which comprehensively covers all aspects about the MiFID II and MiFIR regulatory compliance frameworks. Our regulatory experts are adaptable to the needs and requirements of our clients and partners, and are happy to modify the leading content used in the conference to meet the requirements of your training event.

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MIFID II framework The new MiFID II framework is highly complex and will invariably change the banking and financial services markets throughout the European Union (EU). It is directly applicable to banks and financial services firms located in EU Member States, as well as third country firms operating in the EU through subsidiaries or branches. The new MiFID II rules will affect any Japanese firms that sell Financial Instruments to EU clients, offset trades with an entity located within the EU, or they appoint an EU distributor for Financial Instruments created in Japan.

MiFiD II also mandates the unbundling of research and execution fees, which means that global buy-side and

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sell-side firms will have to implement the new rules within the EU. Japanese rules require asset managers to charge one set of fees to investors, which means Japanese firms operating in the EU will either have to ring-fence European operations or change their traditional research and execution fee model.

It should also be noted that any EU-based buy-side firm that is seeking to invest in Japanese stocks will require unbundled pricing from its Japanese broker. MiFID II rules also restrict trading of certain equities and derivatives to EU venues which may force certain Japanese firms to transact business within the EU. In addition MiFID II

transaction reporting rules prevent MiFID II firms from undertaking business with clients who do not have an internationally recognised 'Legal Entity Identifier' (LEI), which means Japanese firms operating in the EU will need to register for a LEI. The new requirements for 'Best Execution' of trades may also mean that asset managers in Japan may be requested to provide Best Execution reports and this may require optimized data processes as well as precise reconciliation with Japanese data protection laws.

Japanese brokers that are Direct Electronic Access (DEA) users may also be subjected to a higher standard of

due diligence and monitoring through its EU-based DEA provider (e.g. EU broker).

In addition to the wide range of MiFID II operational requirements, MiFID II will usher in a broad range of new investment opportunities for Japanese asset managers and investment firms. The changes brought in by MiFID II will change how firms operate, will change markets for Financial Instruments, and will introduce a range of highly lucrative investment opportunities throughout the EU.

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MIFID II This extended intermediate to advanced level modular programme will provide attendees with comprehensive training in the latest MiFID II operational compliance and implementation issues. Attendees will be guided through the latest MiFID II operational framework in detail, and will be provided with a critical and explanatory review of the latest draft Level 2 texts published by the European Securities and Markets Authority (ESMA).

The training course can also provide extenswive guidance on new specialist MiFID II provisions affecting over-the-counter (OTC) and commodity derivatives, algorithmic trading, dark trades and dark pools.

Training Course Programme

The training course seeks to provide advanced training on MiFID II for middle to senior managers and directors working within the banking, finance, capital markets, and financial services sectors.

The objective is to provide an overview and insights into some of the key aspects of the MiFID II and MiFIR European Union (EU) frameworks. The training course is modular in nature which allows firms to specifically tailor the training course to their specific training needs and existing levels of understanding.

The MiFID II Operational Compliance In-House Training Course is more than just about knowledge and training, it provides

attendees with advanced strategic insight into new MiFID II operational technologies. It can also provide firms with greater insight into MiFID II technology and software solutions (e.g. Approved Reporting Mechanism (ARM) offerings, Recording of Communications technology offerings, Best Execution technology offerings), how to strategically leverage MiFID II to save costs and gain benefits, and insights into next generation MiFID II analysis technologies.

MiFID II is not just about compliance, it represents a key opportunity for firms to strategically differentiate themselves and capitalise on new and emerging financial markets.

Training course benefits ■Attendees will be comprehensively instructed on all the major changes ushered in by the MiFID II framework, including market structure, trade and transaction reporting, position limits and reporting, algorithmic trading, dark pools, third country frameworks, organisational requirements, investor protection, and compliance technologies.

■Attendees will be updated with the latest and most

relevant MiFID II regulatory issues and ESMA technical standards affecting financial services firms in the EU, as well as insights into how to optimise and leverage MiFID II regulatory compliance frameworks.

■Attendees will learn how MiFID II will affect financial services firms from legal, financial, operational, technological and strategic perspectives.

■Attendees will be updated on MiFID II business strategies for financial services firms (e.g., minimising operational losses on Return on Equity, changing strategic business directions, minimising the MiFID II negative impact on future profitability); identifying new post-MiFID II ‘hot’ target markets; and EU market capitalisations strategies (high negative impact on cost-income ratios, ThirdCountry Firm passporting, SME growth markets).

Atendee profile

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■Analysts

■Collateral Management Function

■Dealers

■Chief Executive Officers

■Compliance Managers

■Heads of Compliance

■Chief Operational Officers

■Compliance Officers

■Heads of Operations

■Chief Risk Officers

■Corporate Risk Managers

■Heads of Risk

■Chief Technology Officers

■Credit and Legal Professionals

■Risk Managers

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About storm-7 We are a financial consultancy company that provides premier financial intelligence and knowledge to leading financial institutions around the world. We deliver premium quality conferences on cutting-edge legal and financial issues, and strive to provide access to crucial insight by leading experts on the latest complex regulatory developments. We specialise in creating and delivering conferences, events, and training courses focused within the banking, financial services,

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Financial Technology (FinTech), and Regulatory Technology (RegTech) sectors. We are experts at creating and delivering conferences and events around the world. We are ideally placed to deliver extremely high quality conferences, events, and training courses.

We have created and delivered conferences, events, and training courses at the very highest level. Our clients include world-class leading institutions, Tier 1 firms and industry giants.

Accreditations We have received events bookings and enquiries from firms such as the Central Bank of Ireland, Central Bank of Russia, the Financial Conduct Authority, SopraSteria, UNPRI, SunGard, Capco, Eversheds, Royal London Asset Management, JP Morgan Asset Management, Brandes Investment Partners, Deutsche Bank, Erste Group, Sparkasse Bank Malta, Millennium Information Technologies, Enel, Clearsettle, Objectivus Financial Consulting, D2 Legal Technology, OTC Partners New York, Acquis Exchange, BT Smartnumbers, Sybenetix, Gulf International Bank, Astellon Capital, Cognizant, Accenture, John Hancock, ICBC Standard Bank, NBK

Capital, AB Maximus, Lazard Asset Management, Rennaissance Capital, GT Bank, Stuart Walker Cayman Law Firm, Garanti, E&I Shipping and Trading, ABN Amro, FDIC, Total, Desjardins, Kreab, DeutscheBoerse, FNO.NO, Barclays Investment, JS Bank, ADM Investor Services, CAF, Woodbridge Funds, Enel, Hyannis Port Research, Standard Life, Celdes S.R.L., IFA Global, Raiffeisen Bank International AG, BGC Partners, Fresenius SE & Co. KGaA, Bartonheyman, Lloyds Banking Group, MS Amlin, Nucleus Financial, Islamic Bank, Citadel, Petrus Private Bank Consumers National Bank and Clearsettle.

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Modules 1.

An Introduction to the New MiFID II Operational Framework Market Structure, Trade Reporting and Transaction Reporting

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The MiFID II Consolidated Tape Publication Framework

Key MiFID II Considerations for MiFID II Third Country Firms

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The MiFID II Approved Reporting Mechanism Framework The MiFID II Approved Publication Arrangement Framework

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The Recording of Telecommunications

MiFID II Best Execution

Use of Technology and Software in MiFID II Compliance Programs The Operational Impact of MiFID II and Strategic Analysis

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MiFID II Investment Strategies Suitability and Appropriateness

Liquidity, Algorithmic Trading, and Dark Pools

MiFIR Reporting Framework

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The Third Country Firm Framework

Over-the-counter (OTC) and Commodity Derivatives

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Transparency, Position Limits and Position Reporting Organisational Requirements, Conduct of Business Rules and Investor Protection

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MiFID II Investment Strategies

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Using Artificial Intelligence and Machine Learning to Identify and Analyse MiFID II Requirements

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For Bookings And Enquiries contact Storm-7 - Client Services UK + 44(0)20 7846 0076 CLIENT.SERVICES@STORM-7.COM WWW.STORM-7.COM

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