Business-savvy technologists still needed for MiFID
Over one year on since its compulsory implementation, and the Markets in Financial Instruments Directive (MiFID) is still providing plenty of job opportunities for financial technology professionals.
New alternative trading platforms, such as Chi-X, Turquoise and Nasdaq OMX have also begun to gain a foothold since MiFID's 1 November 2007 deadline, and financial institutions have been pouring money into sophisticated smart order router systems in the hunt for best execution.
But there is still work to be done, says Chris Pickles, head of investment banking and global accounts at BT Global Financial Services, and former co-chair of the MiFID working group.
"Every firm should have been developing and implementing smart order routing systems since last year, but MiFID requires you to review how you execute orders on an annual basis. This creates ongoing opportunities for technology professionals."
However, inevitably, in the current climate, the area isn't as prolific as this time last year, says Pickles. Rather than adding permanent headcount, he says firms are bringing in MiFID experts on a long-term consultancy basis.
P. J. Di Giammarino, founder and CEO of JWG IT, a think-tank that assesses the impact of regulation on capital markets, says MiFID projects are growing in scope.
"From a product and asset class point of view, firms are looking at getting into the OTC derivatives space, but there's an increasingly global outlook. What happens in Europe has to align with China, India, the US, etc. Technologists can help to build out platforms that are common across all the different locations."
Companies are also increasingly looking at how any IT projects will affect the bottom line, and MiFID is no exception.
Di Giammarino adds: "Banks are looking for hybrids - those who understand the business processes and can communicate how technological developments fit into that."
Pickles goes along with this idea: "One of the problems facing MiFID was a lack of communication between the business and technology sides of the company. People who can help the business gain an edge over the competition through technology are going to be needed more and more."
