Naslov
Banking System Compliance With MIFID II Regulation: Consequences and Challenges

Autori
Ercegovac, Roberto ; Maslać, Petra

Izvornik
Journal of accounting and management (1848-137X) 9 (2019), 1; 41-50

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
MIFID II ; bank regulation ; trading activities ; financial markets

Sažetak
MIFID II represents overall financial market reforms in trading and processing of financial instruments. Major influence of new regulatory framework in banking industry is related with pricing, trading, reporting of banking products and financial institutions classifications. New financial markets infrastructure roles is providing more protection for banking clients including the significantly increasing a market transparency. Banks are obliged to demonstrate to the client the best execution price at related trading venues, transaction costs and market behaviour. Regulation is adjusted with other financial market regulation of over the counter markets and market abused protection to avoid regulatory overlap. New regulation is asking full compliance process of banking industry on the European Union banking system. Banks are faced with significant costs in internal processes reorganization, new technological support and opportunity costs of absence of extra profit in competitive and transparency markets. Major benefit of the MIFID II regulation will be traded by non qualified counterparts which will be fully reported in ex ante and ex post trading activities. Banks and other financial institutions which can not exploit the economy of scale will reduced activities and product offer to the clients in the period on regulatory framework adoption. MIFID II is significant challenge to management in positioning banking firm on demanding global financial market.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA