Rules & Regulations

Information about Member Readiness

An overview of readiness activities to be expected prior to the application of MiFID II and MiFIR.

Market Readiness Activities

MiFID II will introduce several new requirements for members and participants of Nasdaq’s trading venues. In turn these requirements will trigger a number of preparatory activities prior to implementation as well as routines and procedures that will need to be performed continuously or periodically.


Technical Updates

The implementation of new MiFID II related system functionalities is expected to occur throughout 2017 and a number of these readiness activities are associated with required system updates.

Testing and Other Technical ActivitiesMembers ImpactedTimelineAdditional Information
INET AND GENIUM INET SYSTEM UPDATES
All updates to INET and Genium IET systems, including API changes
All ISVs and members using in-house solutions. All exchange membersTesting activities have startedDetails in the Technical information pages for INET and Genium INET
APPLICATION CONFORMANCE TESTING
Mandatory conformance testing of all order entry protocols
INET: OUCH/FIX
Genium INET: OMnet/FIX
All ISVs and members using in-house solutionsSeptember/OctoberDetails available in Technical Information pages
TRANSACTION REPORTING
Onboarding and testing of tool for supplying data or enriching Nasdaq's transaction data
All exchange members that are non-investment firms under MiFIDOnboarding and testing scheduled for 2017 Q4Will be published at a later date
ORDER RECORD KEEPING
Order Record Keeping activities
All exchange membersOngoing testing activities throughout 2017See Technical Information page for more details
POSITION LIMITS REPORTING
Onboarding and testing of tool (TRACK) for supplying data or enriching Nasdaq's data
All Commodities participantsOnboarding and testing scheduled for 2017 Q4Will be published at a later date
APA
Testing of APA/OTC Trade Reporting tool
APA clientsTesting available on INET starting in JuneSee INET Technical Information page for more details
MARKET DATA PROTOCOLS
Coordination and testing support of changes to market data protocols
INET: ITCH/GCF
Genium INET: OMnet/GCF
Exchange members, market data vendors and ISVsTesting activities are ongoingSee Technical Information page for more details

Details of these technical activities are published once the information is available on the Technical Information page and in IT-Notices.

Member Readiness

In addition, there are other ongoing mandatory member readiness activities required by MiFID II. Below is a preliminary list of such activities. As information is available, Nasdaq intends to provide detailed information on the implementation of these readiness activities directly to members and market participants. It should be noted that the information below is subject to change. Additionally, this list is based on requirements placed on Trading Venues and is not an exhaustive list of MiFID II requirements placed on Investment Firms.

Member Certification and Data Collection ActivitiesMembers ImpactedTimeline
COLLECTION OF LEIMembers to provide their LEI in the member portalAll exchange members2017 Q2
MiFID INVESTMENT FIRM STATUSMembers to provide their firms' MiFID Investment Firm status in the member portal. The status will determine the requirement for the trading venue to perform Transaction Reporting on behalf of members that are not MiFID Investment Firms.All exchange members2017 Q2
TRADER IDsa) Reconciliation of registered trader lists in member portal to ensure that all traders are issued a Trader IDa) All derivatives and commodities exchange membersa) 2017 Q2-Q3
b) Once Trader IDs are issued, members are to populate their trading systems with the Trader IDs in order to have the data available on order entryb) All derivatives and commodities exchange membersb) October - November 20th
c) Notify Nasdaq of the members firm's requirements for additional, non-personal Trader ID's (Algo, DMA, Routing)c) All derivatives and commodities exchange membersc) October - November 20th
DIRECT ELECTRONIC ACCESSa) In Member Portal, confirm if AOR users should be tagged as DMA or non-DMAa) All cash equities exchange members with AOR usersa) September - October
b) In Member Portal, confirm DMA flow under MiFID II and request DMA Trader ID'sb) All non-equities exchange members providing DMAb) September - October
c) Members to be contacted by Nasdaq to confirm compliance to new rulesc) All sponsored access providersc) September - October
ALGO SELF-CERTIFICATIONUsing a self-certification form in the member portal, members to certify that the algorithms they deploy have been tested to avoid contributing to or creating disorderly trading conditions, according to the requirements of RTS 7All members engaged in algorithmic tradingOctober - November
APPLICATION CONFORMANCE MEMBER SELF-CERTIFICATIONAfter conformance testing of application has been completed members to use the member portal to select the trading application they are usingAll trading venue membersOctober
INDIRECT CLEARINGa) Members to request new account for indirect clientsa) All clearing members with indirect clientsa) 2017 Q3
b) Transfer of position and collateral to new accountb) All clearing members with indirect clientsb) 2017 Q4
DUE DILIGENCEDue diligence self-certification of compliance with the rules of the trading venues, according to the requirements of RTS 7All trading venue membersTo be determined

Nasdaq’s Member Readiness team started contacting members individually in May regarding the Member Certification and Data Collection activities. For more information, contact MiFID2Readiness@nasdaq.com.

It is important to note that some of these activities will be ongoing once MiFID II goes into effect. Member rule books will be updated accordingly. Drafts of proposed rule changes are available here.

DISCLAIMER: All information contained herein is obtained by Nasdaq from sources believed to be accurate and reliable. However, the Markets in Financial Instruments Directive and Regulation and related level 2 and level 3 texts (“MiFID II/R”) have not yet been fully adopted and/or implemented. Neither Nasdaq Nordic Exchanges nor any of its affiliates or subsidiaries (collectively “Nasdaq”) assumes any responsibility for any errors or omission contained herein. The information herein is not intended to provide legal advice on any matter, nor is it intended to be comprehensive. All information is provided “as is” without warranty of any kind. While the information has been prepared on the basis of the best information available, Nasdaq accepts no liability for decisions taken by any party, based on this information.

NASDAQ MEMBER PORTAL TO FACILITATE MIFID II MARKET READINESS

Nasdaq has deployed a member portal to make member specific information easily available and to facilitate interactivity with members.

The Nasdaq Member Portal will provide customer specific services related to memberships, users, traders, accounts, ports and configuration. The services will be available to members and other customers of Nasdaq.

.

Simplicity and Control

Watch the video and click the button to read more about the Nasdaq Member Portal.
Remove/Replace video : .
Edit video details : . .

MiFID II Activities

As MiFID II will require Trading Venues to periodically collect information about Members and other market participants, Nasdaq will use the Member Portal to facilitate the automation of the collection of MiFID II required information: 

  • Short code management of client and personal data 
  • Registration of LEI 
  • MiFID Investment firm status 
  • Algorithm certification 
  • Annual member due diligence 
  • Non-financial entity with risk reducing exemption status (Commodities only)

There will be ample time provided in 2017 for all members and market participants to complete required activities related to the member portal prior to the MiFID II implementation deadline. In time, the utilization of the member portal will become mandatory for members as it will be a part of the MiFID II information collection effort.

Register Now!

At this time, all member firms should register for the Nasdaq Member Portal to start benefiting from its current features:

  • Submit and track online request forms
  • Control user rights for multiple memberships
  • Manage INET and Genium INET connections
  • Verify technical configurations
  • View member specific data and participant configurations
  • Register and de-register authorized exchange traders
  • View list of traders

For any questions about MiFID II member readiness, please contact your Key Account Managers or alternatively, our MiFID II teams:
Sign up for the MIFID II newsletter to stay updated on the latest news and information regarding the MIFID II implementations
Recent {{catTitle ? + catTitle : ""}} posts
{{post.Date | date:'MMM d'}}
Contact Us
For Regulatory Reporting
regulatoryreporting@nasdaq.com
For OTC Trade Publication - APA
OTCpublication.mifid2@nasdaq.com
For Cash Equities
equity.mifid2@nasdaq.com
Legal and General Questions
MiFID2FAQ@nasdaq.com
Scroll up