Compliance Guide

MiFID II Compliance Guide

How PROOF Protocol helps Luxembourg financial institutions meet MiFID II requirements.

What is MiFID II?

MiFID II (Markets in Financial Instruments Directive II) is an EU regulatory framework that requires financial institutions to maintain comprehensive audit trails of all transactions and communications.

For Luxembourg financial services, this means storing detailed records of every trade, order, and client interaction for a minimum of 7 years.

Key Requirements

Complete Audit Trails

Record every step of the transaction lifecycle, from order placement to execution. PROOF Protocol automatically captures request/response data with cryptographic verification.

7-Year Retention

Records must be stored for at least 7 years and be readily accessible for regulators. PROOF Protocol uses blockchain's immutability to guarantee retention.

Data Integrity

Records must be tamper-proof and verifiable. Blockchain cryptography ensures no record can be modified or deleted after creation.

Data Protection (GDPR)

While maintaining MiFID II compliance, you must also respect GDPR rights. PROOF Protocol's privacy levels allow you to encrypt sensitive data while keeping proof hashes on-chain.

How PROOF Protocol Solves This

1. Automatic Record Creation

Wrap any API call with one line of code. Every transaction is automatically recorded on Polygon blockchain with full request/response data.

const response = await proof.record(fetch('/api/trade'));
// ✅ Automatically MiFID II compliant

2. 7-Year Guaranteed Retention

Blockchain records are permanent and cannot be deleted. Unlike traditional databases, there's no risk of data loss, corruption, or accidental deletion.

3. Instant Regulator Reports

Export MiFID II-compliant reports with one command. All records include cryptographic proof of authenticity.

const report = await proof.export({
  startDate: '2024-01-01',
  endDate: '2024-12-31',
  format: 'mifid2' // Regulator-ready format
});

4. Cost-Effective Solution

Industry reports estimate traditional compliance audits at €10K-50K annually. PROOF Protocol's proposed pricing (Free tier for testing, €199-499/month for production, Custom for Enterprise) eliminates manual processes and consultant fees. Beta pricing subject to change.

Implementation Checklist

1
Install @proof-protocol/sdk in your backend
2
Configure ProofClient with your private key
3
Identify all API endpoints that require MiFID II compliance
4
Wrap each endpoint with proof.record()
5
Choose appropriate privacy level (PUBLIC, PRIVATE, SHARED)
6
Test recording and verification in staging environment
7
Set up automated export for regulator reports
8
Document your compliance process for auditors

Get MiFID II Compliant Today

Join Luxembourg's leading financial institutions using PROOF Protocol.

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