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Regulatory Assurance for Singapore, Hong Kong, UK, EU, Dubai, Bermuda, Australia and Canada


MiFID Algo compliance

In the evolving landscape of financial services, the surge in algorithmic trading has introduced a wave of efficiency and innovation. However, this transformation is accompanied by stringent regulatory requirements that challenge even the most seasoned professionals in the industry. The implementation of the Markets in Financial Instruments Directive II (MiFID II) and Regulatory Technical Standard (RTS) 6 has significantly increased the oversight and responsibilities for firms engaging in algorithmic trading.

The Challenge of Compliance
Under MiFID II, particularly Article 17, and RTS 6, firms are required to perform annual self-assessments and validations of their trading algorithms. These regulations ensure that firms maintain transparency, fairness, and accountability in their trading practices. The scope of these regulations is broad, encompassing various entities defined as investment firms, and leaves no room for error with exemptions being tightly controlled.

The annual self-assessment process is intricate, involving multiple phases such as planning, assessment, validation, and audit. Each phase demands a thorough understanding of the regulations, meticulous documentation, and rigorous testing of controls. Firms often struggle with distinguishing responsibilities, allocating skilled resources, and maintaining consistency across departments, which can lead to significant challenges in compliance and operational risk.

How Simbix Can Help
At Simbix, we understand the complexities and challenges that come with algorithmic trading regulations. Our seasoned Algorithm Assurance team is adept at guiding firms through the intricate MiFID II compliance landscape. Here’s how we can assist:

Expert Planning and Execution: We help firms strategically plan their self-assessment process. This includes defining the scope, setting clear timelines, and assigning responsibilities. Our experts ensure that every step of the process is aligned with regulatory expectations, from initial planning through to final audit.
Comprehensive Assessments: Our approach to the self-assessment phase involves a thorough review and attestation of compliance across all relevant functions within the firm. We help identify any deficiencies and work with you to develop effective remediation strategies.
Rigorous Validation: Simbix’s risk management professionals excel in validating the design and operational effectiveness of controls. We provide an objective analysis of the control owners' compliance statements and challenge them where necessary to ensure robust compliance.
Detailed Auditing: Our internal audit services provide oversight over the entire validation report, ensuring that the conclusions reached are sound and that all non-compliance issues are adequately linked to effective remedial actions.
Continuous Support and Guidance: Beyond the annual self-assessment, Simbix offers ongoing support and guidance to help firms stay ahead of regulatory changes and adapt to evolving market conditions. Our experts are always ready to assist with any aspect of algorithmic trading risk and control.
Algorithmic trading offers tremendous potential, but it also requires firms to navigate a complex regulatory environment. Simbix is committed to ensuring that your firm not only meets these regulatory requirements but excels in doing so. Our extensive experience and tailored approach mean that we can guide you through what might seem an onerous and complex process at the outset.

If you’re looking to enhance your compliance strategies around algorithmic trading or need guidance through your MiFID II Annual Self-Assessment, Simbix has the expertise and the insights you need. Connect with us today to discuss how we can support your business in maintaining compliance and achieving operational excellence in the ever-changing world of financial services.

For further information or to discuss your specific needs, please reach out to our team at Simbix. Let us help you turn regulatory challenges into opportunities for growth and innovation.


Strengthening Payment Security with Simbix: Your Guide to PSD2 and SCA RTS Compliance

In the digital age, the security of electronic payments has become paramount. The Payment Services Directive 2 (PSD2) in the European Union introduces rigorous requirements aimed at enhancing payment security and consumer protection. A critical component of PSD2 is the Regulatory Technical Standards (RTS) for Strong Customer Authentication (SCA), which outlines the necessity for multiple authentication elements to be involved in electronic transactions. This directive is reshaping the landscape of financial transactions, imposing new challenges and opportunities for financial institutions.

Understanding the SCA RTS Requirements
The SCA RTS under Article 3 of PSD2 mandates that payment service providers implement strong customer authentication on the payer’s side. This involves the use of at least two independent elements categorized as knowledge (something only the user knows), possession (something only the user possesses), and inherence (something the user is) to verify the identity of the user. These requirements are designed to reduce fraud and make online payments more secure.

Compliance with SCA RTS is not just a regulatory requirement but also a crucial step in building trust with customers. However, the implementation of these standards can be complex, involving significant adjustments to how payment services authenticate transactions.

How Simbix Can Assist with SCA RTS Audits
Simbix offers specialized SCA RTS audit services designed to ensure that your payment systems comply with PSD2 requirements while maintaining optimal user experience. Here's how we can help:

Comprehensive Audit Services: Simbix provides thorough audits of your authentication processes and systems to ensure they meet the SCA RTS standards. Our audit approach includes an assessment of the technical and operational aspects of the SCA implementations.
Gap Analysis and Risk Assessment: We conduct detailed gap analyses to identify any areas where your current systems might not fully meet the SCA requirements. Our risk assessment process evaluates the potential impacts of these gaps on security and compliance.
Customized Recommendations: Based on our audit findings, Simbix offers tailored recommendations for enhancing your SCA processes. This may include suggestions for integrating additional authentication methods, improving existing systems, or implementing new technologies.
Implementation Support: Beyond providing recommendations, Simbix can assist with the implementation of these improvements. Our team of experts supports you through the technical and procedural changes necessary to achieve full compliance.
Ongoing Compliance and Updates: PSD2 and SCA RTS are subject to ongoing changes as new threats and technologies emerge. Simbix stays at the forefront of regulatory and technological developments, offering continuous guidance to ensure your systems remain compliant over time.
Training and Awareness Programs: To enhance the effectiveness of SCA implementations, Simbix provides training for your team on the latest authentication technologies and compliance requirements. We also offer consumer awareness programs to help end-users understand the benefits and workings of SCA, thereby improving their confidence and reducing friction in its adoption.
In the rapidly evolving world of financial services, staying ahead of compliance requirements is crucial for maintaining customer trust and business integrity. Simbix’s SCA RTS audit service equips your organization to meet the challenges posed by PSD2 and SCA RTS, turning regulatory hurdles into opportunities for enhancing security and customer satisfaction.

If you’re looking to ensure your payment systems are robust, secure, and compliant, reach out to Simbix today. Our expert team is ready to guide you through every step of the SCA RTS compliance process, ensuring that your business is not only aligned with today's standards but also prepared for the future of payment security.

Connect with us at Simbix to discuss how we can assist your organization in achieving 

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