TradeTech Blog



    Data management is now a key topic for companies across the world, but it is essential that firms comply with the regulation enforced within their particular country.

    Businesses will want to adopt a strategy that is as efficient as possible, though consulting local laws before adopting any particular approach is imperative. It is especially crucial because the laws in different regions of the world differ vastly, something which companies must be aware of when trading internationally.

    While regulation is a key consideration for any company, firms must also look at how they want to manage their data, as there are now a wide variety of different options available, thanks to an influx of new technology in the market. Three countries where particular progress has been made regarding data management for professionals working in the financial sectors are Germany, Austria and Switzerland.

    Financial professionals in the three nations recently learned that CE On-Demand has agreed to a strategic partner alliance with multi-vendor IT services provider ACP, in a bid to develop a new cloud computing solution. The deal hopes to provide customers of ACP with individually-tailored cloud services and low prices in order to save costs for organisations, particularly medium-sized businesses.

    It offers three different delivery models for cloud services from its data centres in Munich and Vienna. These give companies data management technology of a high quality on dedicated servers. Rainer Weinzettl, regional general manager of CE On-Demand, said: “CE On-Demand has now three years’ of experience in cloud services provisioning, over 1.5 million end users on its platform and a presence in 13 countries.”

    “We are especially content that through our cooperation with ACP, businesses from their customer base will get access to the best of breed cloud technology and will be able to save up to 80 per cent on communication costs in three years.”

    Also, one Swiss firm in particular that has upgraded its trading technology is SIX Swiss Exchange, which bolstered its SWXess platform with X-Stream INET technology from NASDAQ OMX.

    Christian Katz, chief executive officer of the SIX Swiss Exchange, said: “By upgrading our trading platform and launching our co-location service, we are keeping pace with the expansion of SIX Swiss Exchange. Today represents the next major milestone in our continuous pursuit of best-in-class services.”

    While these technologies can yield numerous benefits, a specific piece of legislation that will people in the financial markets in Switzerland, Germany and Austria must be aware of is the European Commission’s Markets in Financial Instruments Directive (MiFID II). The regulation aims to increase competition and boost consumer protection in investment services, helping professionals in the financial sector to steer away from the monetary threats brought on by Europe’s unpredictable economy.

    However, one MEP has highlighted potential weaknesses in MiFID II, noting that the Commission lacks ambition with regard to the topic of data consolidation. Mr Ferber, who is attempting to steer the rule through Parliament, claimed that cross-border and consolidated data is required in order to decrease the levels of arbitrary trading and offer improved price information.

    “The situation in financial markets has changed due to technical progress, complex new trading strategies and the arrival of new market participants. There are gaps that have to be closed, because unregulated activities must not take place,” he explained.

    His recommendations were made in order to form a basis for the European Commission’s official position, ahead of plans to update the MiFID II to encompass new financial products. Mr Feber was not alone in providing guidance for the law, as a number of other professionals, including Pascal Canfin, who underlined that transparency and high quality advice were key for personnel in the financial market.

    Therefore, it is evident that MiFID II is currently in a transitional process, meaning that its laws are liable to alter at any time. Consequently, it is paramount that businesses in Germany, Austria and Switzerland constantly check regulation and ensure that their data management tactics are in compliance.

    The effects of MiFID II and all the upcoming regulatory changes on data management, with particular focus on the DACH region will be under the spotlight at FIMA DACH 26 September, 2012, Frankfurt.

    1 meeting – 2 dedicated streams to market data and reference data – 20+ thought leaders from Commerzbank, Deutsche Postbank, RBS Wealth Management, SGSS Deutschland Kapitalanlagegesellschaft and many more.

    Find out more, including how to be a part of it, visit

    Related posts:

    1. How is regulation affecting data management in Germany, Austria and Switzerland?
    2. Malcolm Chisholm on Data Management
    3. Multi-Asset or Jobcentre?

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