Compliance Guide
Markets in Financial Instruments Directive II
MiFID II governs EU financial markets with specific requirements for algorithmic trading, best execution, and investor protection that apply to AI agents operating in European financial services.
Agent-specific requirements
- Article 17: Algorithmic trading systems must have effective risk controls and systems
- Best execution obligations when AI agents route or execute orders
- Transaction reporting to national competent authorities
- Record-keeping of all orders and transactions for a minimum of five years
- Annual self-assessment of algorithmic trading systems and strategies
- Kill switch functionality and market-making obligations for certain AI trading strategies
How Signet scoring maps to MiFID II
Signet's comprehensive scoring addresses MiFID II's multi-faceted requirements. Financial dimension scores reflect transaction handling reliability. Reliability ensures continuous operation during market hours. The five-year audit trail retention supports record-keeping obligations. Score trend analysis contributes to the annual self-assessment of algorithmic systems.
Implementation guidance
Financial institutions deploying AI trading agents in EU markets should maintain Signet Scores above 850 with emphasis on Financial and Reliability dimensions. Enable full transaction logging with five-year retention. Use configuration fingerprinting to document system changes for annual self-assessments. Monitor score trends to identify degradation before it impacts best execution.
MiFID II-ready agents
Register your agents and get compliance-mapped trust scoring for MiFID II.