From MiFID II to GDPR: RegTech summit lights the way

by Thomson Reuters Financial & Risk

The unmanned Falcon 9 rocket launched by SpaceX, on a cargo resupply service mission to the International Space Station, lifts off from the Cape Canaveral Air Force Station in Cape Canaveral, Florida January 10, 2015. Photography: Scott AudetteThe unmanned Falcon 9 rocket launched by SpaceX, on a cargo resupply service mission to the International Space Station, lifts off from the Cape Canaveral Air Force Station in Cape Canaveral, Florida January 10, 2015. Photography: Scott Audette


The RegTech Summit for Capital Markets in New York highlighted innovative and cost-efficient ways for financial institutions to tackle the burden of regulation, including MIFID II, FRTB and GDPR.

The implementation cost of MiFID II has been at estimated at around US$2.5 billion, with ongoing annual compliance at US$750 million.

That’s why RegTech is seen as critical to reducing the cost and increasing the efficiency of compliance, not just for MiFID II but GDPR, the Fundamental Review of the Trading Book (FRTB) and Know Your Customer (KYC).

Learn what exactly MiFID II is and why it is so important

The RegTech response to this regulatory challenge was examined in great detail at A-Team Group’s recent RegTech Summit for Capital Markets in New York City, an event sponsored by Thomson Reuters.

Download report — The Challenges and Opportunities of RegTech

Discussions at the summit, which was attended by key opinion-formers and practitioners, included more about the RegTech opportunity, challenges to implementation, and the role of RegTech in compliance.

$100bn RegTech opportunity

Brad Giemza, Chief Risk Officer at R.J. O’Brien, set the scene by highlighting that spending on governance, regulatory and compliance software is estimated to reach US$120 billion by 2020, creating a US$100 billion opportunity for RegTech.

He added: “We can’t move forward unless we change the systems we own, but we can implement new technology from RegTech start-ups and move forward immediately.”

John Mason, Global Head of Regulatory & Market Structure Propositions at Thomson Reuters, led a panel session considering how RegTech could turn the burden of regulation into opportunity.

Reviewing the costs of MiFID II, he said: “Regulation isn’t cheap, compliance costs in terms of both money and people.

“Typically, the industry has addressed the regulatory problem using people, but this is no longer sustainable. The need is to embrace RegTech.”

GDPR challenges

GDPR was also on the agenda, with data management challenges ranging from huge data volumes through to record keeping, security and the need to avoid data breaches.

As one panel member commented: “May 25, 2018 is not just a compliance deadline, but the beginning of a new era in data privacy.”

Watch video — Fundamental Review of the Trading Book (FRTB) — Market Developments, Trends and Requirements 

*see video here.

FRTB compliance has been pushed back to January 2019 and may slip to January 2020, but its complexity keeps it on the agenda and in need of RegTech solutions to support large computational loads and reduce capital requirements.

Considering that 40% of regulatory spend is made after a compliance deadline, panel member John Mason said: “If you look at underlying data quality, consistency and normalization, you can address regulations more strategically, not just one at a time.

“This is the transformational aspect of FRTB.”

Discover how the Fundamental Review of the Trading Book can help you find out what you need to know to revise market risk framework

KYC automation

The perennial problems of manual processing for KYC will remain a big issue in 2018, with a discussion panel concluding that RegTech could help.

Charles Minutella, Business Development Manager for KYC, Thomson Reuters, explained: “Traditionally, banks would add headcount, but doing this at a major bank would require two or three times the number of people they have now over the next five years.

Manual processes also take a toll on the client experience. Thomson Reuters provides RegTech solutions to help banks automate KYC and add transparency to the process.”

Discover why a complete, end-to-end KYC solution is essential

Clearly, RegTech has potential, but how will it pan out?

The results of a Thomson Reuters survey assessing the impact of RegTech and FinTech on the role of compliance at 800 financial services firms show a positive approach to RegTech, but also some challenges.

MiFID II banner

Written by:

Thomson Reuters Financial & Risk

Thomson Reuters Financial & Risk on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.