Agenda: - MiFID II Background - The Current State of MiFID II - ZOOM + MiFID II Overview - Example Directives, Regulations, and Guidance - ZOOM + MiFID II - Availability - Capabilities - Demonstration

1. Webinar:
ZOOM
+ MiFID II
11/20/2017

2. Gratitude.
www.zoomint.com

3. Agenda
• MiFID II Background
• The Current State of MiFID II
• ZOOM + MiFID II Overview
• Example Directives, Regulations, and Guidance
• ZOOM + MiFID II
• Availability
• Capabilities
• Demonstration

4. MiFID II
Background
01.31. 2017

5. White Paper
Visit
zoomint.com/mifidii
to Download

6. Who is impacted by MiFID II?
#1: Handling EU Financial
Instruments
Also…
• Global asset managers based in US, but
have a physical location in Europe with
European clients
• Any Country in the same situation
• “Operating a global business under two
starkly different regulatory regimes is very
challenging.”
• Corporate finance companies
• Broker-dealers
• Credit institutions
• Portfolio managers
• Data service providers
• Stock brokers
• Central counterparties
• Commodity firms
• Market operators
• Investment firms
Source: http://financeandriskblog.accenture.com/regulatory-insights/regulatory-
alert/mifid-ii-and-what-it-means-for-us-asset-managers

7. MiFID II Timelines
MiFID is really “just starting” on Jan 3, 2018.
1/3/2018
MiFID II Enforced
1/3/2017
Original Date:
MiFID II
Enforcement
4+5/2016
MiFID II Adopted
by Commission
6/12/2014
MiFID II Published
in Official Journal
Source: www.kwm.com/~/media/library/Files/PDF/MiFID%20II/KWM_MiFID_II_Timeline_24586.ashx
Time

8. Where is MiFID II Defined?
The EU Law defies a “regulation”
as a binding legislative act.
Must be applied in entirety across the EU
A “directive” is a legislative act
that sets out a goal for all EU
countries to achieve.
Up to the individual countries to devise
their own laws and how to reach goals
MiFID II Directives and
Regulations
1. Directive 2014/65/EU
2. Commission Delegated Regulation
(EU) 2017/565
• Country-specific
3. Commission Delegated Directive
(EU) 2017/593 (Not as applicable)
• Country-specific
4. Questions and Answers On MiFID
II and MiFIR Investor Protection
and Intermediaries Topics

9. Impacted Areas
Trade
Reconstruction
Surveillance
Record Keeping
and Immutable
Storage
Best Execution
Transaction
Reporting
Pre-Trade
Transparency
Trading Venues
Port-Trade
Transparency
Voice Trading,
Sales Trader
Workflows
Order
Management
KYC and
Suitability
Data, Price,
Analytics, and
SI Calculator
Research
Source: www.bloomberg.com/professional/blog/u-s-firms-becoming-mifid-ii-friendly-means-just-research-unbundling

10. The Current State
of MiFID II

11. The Current State of MiFID II: Expensive

12. The Current State of MiFID II: Unready
Duff & Phelps (corporate advisory firm)
“Just 36% of financial services
firms...are confident they will be
able to comply with the regulation
by the January 2018
implementation date.”
(April 2017)
JWG (EU regulations advisor)
“90% of buy-side firms believe
they are at either high or medium
risk of not being fully compliant by
the January 2018 deadline.”
(July 2017)
Thomson Reuters
“82% of respondents agreed that
organizations would not be ready
for the January 2018 deadline.”
(May 2017)
Smith & Williamson (financial consultancy)
“73% of advisers did not feel there
was enough clarity on MiFID II to
adequately prepare their business
for the new rules that will come into
force on 3 January.”
(Sept 2017)

13. ZOOM + MiFID:
Overview

14. ZOOM and MiFID II
Simple
• No new hardware needed
• Patch-based install – supports ZOOM 5.8 and 6.1
• Little new configuration required and little risk of change
Fast
• Total timeline to compliance is days
• Takes hours for patch to be installed
• Training and roll-out is minimal with no downtime
Cost-Effective
• No new SKUs required (if on active maintenance)
• No big process or technology consulting projects
• No heavy-lifting by internal IT or business teams
ZOOM Quality
Management
• Added to transform
complaints management
into quality management
• Supports capture of chats
and emails with ZOOM
Omnichannel Search
Engine

15. Example Directives,
Regulations, and
Guidance

16. Key References for Call Recording
• Article 16—Organizational Requirements
• Article 69—Supervisory Powers
Directive 2014/65/EU
• Article 26—Complaints Handling
• Article 76—Telephone Recording
Delegated Regulation
(EU) 2017/565
• Not a primary reference for telephone
recording or record keeping
Delegated Directive
(EU) 2017/593
• Telephone Recording
• Record Keeping
ESMA Guidance

17. Directive Examples
Article 16
7. Such telephone
conversations… shall also
include those that are intended
to result in transactions
concluded…even if those
conversations or
communications do not result in
the conclusion of such
transactions…
Article 69
1. Competent authorities shall be
given all supervisory powers…to
fulfil their duties...
2…(a) have access to any
document or other data… (d)
require existing recordings of
telephone conversations or
electronic communications…

18. Delegated Regulation Examples
Article 26
3. Investment firms shall
establish a complaints
management function
responsible for the investigation
of complaints.
Article 76
2. Investment firms shall ensure
that the management body has
effective oversight and control
over the policies and procedures
relating to the firm's recording of
telephone conversations and
electronic communications.

19. Cost of Compliance vs Value of Loyalty
• Tactical
• Metric = # of Complaints
Filed and # Resolved
• Capture and Process
Problems
• Operational & Strategic
• Metric = # Satisfied and #
of Loyal Customers
• Improve Employee
Behavior, Policies,
Processes, Content, and
Technology
Complaints
Management
Quality
Management

20. ESMA Guidance Examples
Question 1: Which internal telephone
conversations or electronic
communications regarding the handling of
orders and transactions need to be
recorded?
Answer 1: As an example, such records
should include conversations or
communications by which the sales desk will
request a quote from the trading desk on a
financial instrument before
concluding a transaction with a client. It may
also include conversations or communications
that are within scope and made to or from the
sales and research desks.
Question 9: MiFID II enables clients to
request access to records of their
telephone conversations and electronic
communications with the firm. Does this
right also cover internal communications
within the firm?
Answer 9: MiFID II states that records kept in
accordance with Article 16(7) of MiFID II shall
be provided to the client involved upon
request. This extends to internal
conversations and communications between
employees and contractors of the firm which
relate to the provision of the client’s order.

21. White Paper
Visit
zoomint.com/mifidii
to Download

22. ZOOM + MiFID II:
Availability and
Demonstration

23. MiFID II + ZOOM: Availability
When is it available? GA as of November 27, 2017
What versions are supported? 5.8 and 6.1
How long does it take to implement? Typically days (not weeks)
How do I get started? Need services commitment

24. ZOOM + MiFID II:
Demonstration
• High Availability
• Demo Scenarios
• Demo
• Complaints and Quality Management

25. High Availability Architecture
• Distributed architecture
• Multiple HA models
• Multiple Deployment Types:
• Single Site
• Multi-Site Centralized
• Multi-Site Distributed
• Example
• Redundant Data Centers – each can handle
full load in case of outage
• Recorders are redundant
• Recorders are controlled by two cross
threaded cores
• Calls synced to a central replay server,
recordings get consolidated
What customers typically say:
“For us, ZOOM has achieved 99.999%
uptime.”
“We haven’t had a server go down in over five
years.”
What partners typically say:
“ZOOM just works. Period.”
“We trust ZOOM with our customers.”

26. Demo Scenarios
• Recording Rules & MiFID II Tagging
• Search & Review MiFID II Calls
• Setup Compliance Groups/Users
• Data Retention and Protection
• See and Search Calls
• Export Call Information
• Audit Trail Logging and Search
• Audit Trail Exports
Complaint Management & Quality Management
Admin Compliance Analyst

27. Cost of Compliance vs Value of Loyalty
• Tactical
• Metric = # of Complaints
Filed and # Resolved
• Capture and Process
Problems
• Operational & Strategic
• Metric = # Satisfied and #
of Loyal Customers
• Improve Employee
Behavior, Policies,
Processes, Content, and
Technology
Complaints
Management
Quality
Management

28. The Value of WFO in a Nutshell
WFO Software: Contact
Centers and Back Office
• Compliance
• Customer Satisfaction
• Agent & Process Performance
• Customer Experience
• Costs and Profit
ZOOM is most known for
first-class call recording.
Capture
Compliance
Interactions
Analyze
Compliance
Interactions
Improve
Compliance
Interactions

29. WFO / QM Benefit “Laundry List”
• Improved customer satisfaction
• Reduced churn
• Reduced handle time
• Greater interaction quality
• Reduced errors
• Lower contact center costs
• Better agent engagement +
behavior + satisfaction
• Reduced agent attrition
• Improved agent productivity
• Increased process effectiveness
• Better application efficiency
• Improved omnichannel customer
experiences
• Increased upsell/cross-sell
• Enhanced brand reputation
• Increased first contact resolution
• Increased profitability

30. Secret Sauce
Part 1: WFO
Capture
Interactions
Analyze
Interactions
Improve
Interactions
Call
Recording
Voice of the
Customer
Speech
Analytics
Video
Recording
Screen
Capture
Live
Monitoring
eLearning
Workforce
Management
Performance
Analytics
Quality
Management
Search Customer
Conversations Like
You Search the
Internet
Omnichannel
Search
EngineCall recording is
just one part of
contact center
WFO

31. Gratitude.
www.zoomint.com

32. Next Steps
1. Get White Paper at
zoomint.com/mifidii
2. Access this webinar and contact sales for a demo
zoomint.com/mifid-ii-webinar