# Can a Firm's Investment in RegTech Be Considered a Mitigating Factor in a MiFID II Penalty Calculation? ▴ Question

**Published:** 2025-08-13
**Categories:** Question

---

![A precisely balanced transparent sphere, representing an atomic settlement or digital asset derivative, rests on a blue cross-structure symbolizing a robust RFQ protocol or execution management system. This setup is anchored to a textured, curved surface, depicting underlying market microstructure or institutional-grade infrastructure, enabling high-fidelity execution, optimized price discovery, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-engineered-rfq-block-trade-execution-for-digital-asset-derivatives.jpg)

![Internal components of a Prime RFQ execution engine, with modular beige units, precise metallic mechanisms, and complex data wiring. This infrastructure supports high-fidelity execution for institutional digital asset derivatives, facilitating advanced RFQ protocols, optimal liquidity aggregation, multi-leg spread trading, and efficient price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-core-rfq-engine-for-institutional-digital-asset-options.jpg)

## Concept

The calculus of regulatory penalties under the Markets in Financial Instruments Directive II (MiFID II) is a structured process, one where the final figure is arrived at through a series of defined adjustments. Within this framework, a firm’s investment in [regulatory technology](https://prime.greeks.live/area/regulatory-technology/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RegTech) emerges as a powerful, demonstrable commitment to the principles of sound governance and systemic integrity. The core of the matter resides in how national competent authorities (NCAs) and the European Securities and Markets Authority (ESMA) approach the determination of fines. The process is not arbitrary; it begins with a baseline amount derived from the nature and severity of the infringement, which is then modified by a set of explicit aggravating and mitigating factors.

A pivotal [aggravating factor](https://prime.greeks.live/question/what-are-the-primary-advantages-of-using-an-explicit-factor-model-over-pca-for-stress-testing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), one that can substantially increase a penalty, is the discovery of “systemic weaknesses in the organisation revealed by the infringement.” This points directly to a firm’s internal architecture ▴ its processes, controls, and the technological systems that underpin its compliance functions. A [RegTech investment](https://prime.greeks.live/question/how-can-financial-institutions-quantify-the-return-on-investment-of-a-regtech-transformation-initiative/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), therefore, functions as a direct counter-narrative to the accusation of systemic weakness. It is a tangible, auditable demonstration that the firm has proactively engineered its operational environment to adhere to its regulatory obligations.

The investment represents a foundational layer of control designed to prevent the very failures that lead to enforcement actions. Its presence, when properly documented and validated, provides a compelling argument for mitigation by showing that any breach was an anomaly within a robust system, rather than a symptom of a deficient one.

MiFID II imposes a vast and complex set of obligations, from [transaction reporting](https://prime.greeks.live/area/transaction-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and [best execution](https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) to product governance and investor protection. Fulfilling these duties consistently across millions of transactions is an immense data management challenge. This operational reality positions compliance as an engineering problem as much as a legal one. Consequently, manual or disjointed processes are inherently fragile and may be viewed by regulators as a form of systemic weakness.

A sophisticated RegTech platform automates and standardizes these critical functions, creating a resilient and verifiable compliance apparatus. This technological infrastructure becomes the firm’s primary evidence of its commitment to meeting the high standards of the directive, transforming a conceptual commitment to compliance into a concrete, operational reality.

![Segmented beige and blue spheres, connected by a central shaft, expose intricate internal mechanisms. This represents institutional RFQ protocol dynamics, emphasizing price discovery, high-fidelity execution, and capital efficiency within digital asset derivatives market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimal-execution.jpg)

![A sophisticated, multi-layered trading interface, embodying an Execution Management System EMS, showcases institutional-grade digital asset derivatives execution. Its sleek design implies high-fidelity execution and low-latency processing for RFQ protocols, enabling price discovery and managing multi-leg spreads with capital efficiency across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-platform-market-microstructure.jpg)

## Strategy

A strategic approach to leveraging RegTech for penalty mitigation extends beyond simple procurement. It requires a deliberate effort to embed the technology within the firm’s governance framework and to create a comprehensive evidentiary record that can be presented to regulators. The objective is to construct an irrefutable case that the firm has taken “all sufficient steps” to ensure compliance, a higher standard introduced by MiFID II.

This involves not only implementing the right tools but also demonstrating their effectiveness, their integration into daily workflows, and the organization’s commitment to their proper use. The strategy is one of proactive demonstration, where the technology serves as the centerpiece of a narrative of diligent and systemic control.

> A firm’s ability to mitigate penalties hinges on proving its RegTech investment creates a robust compliance architecture, not just a superficial fix.

![An abstract, precision-engineered mechanism showcases polished chrome components connecting a blue base, cream panel, and a teal display with numerical data. This symbolizes an institutional-grade RFQ protocol for digital asset derivatives, ensuring high-fidelity execution, price discovery, multi-leg spread processing, and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-1.jpg)

## The Architecture of Mitigation

The ESMA framework for fines provides a clear, if unforgiving, logic. Regulators begin with a [baseline penalty](https://prime.greeks.live/question/how-do-brokerage-firms-calculate-the-penalty-for-a-concentrated-position/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and apply coefficients for various factors. An aggravating factor like “systemic weakness” can dramatically escalate a fine. A strategic deployment of RegTech is designed to neutralize this specific risk.

The investment must be framed as a foundational strengthening of the firm’s [control environment](https://prime.greeks.live/question/how-does-the-regulatory-environment-influence-the-strategies-used-to-control-information-in-rfq-protocols/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). This means the chosen solutions should directly address the high-volume, high-risk obligations under MiFID II, creating an automated, auditable, and consistent compliance process that is inherently resistant to systemic failure.

The table below outlines key aggravating factors identified by regulators and illustrates how a targeted RegTech strategy can build a case for mitigation by providing a direct and verifiable counterpoint.

| Aggravating Factor (Per Regulatory Frameworks) | Strategic Response via RegTech Investment | Evidentiary Output |
| --- | --- | --- |
| Systemic weaknesses in the organisation | Implementation of an integrated compliance platform that automates reporting and monitoring, reducing reliance on manual, error-prone processes. | System architecture diagrams, internal audit reports on control effectiveness, and records of reduced error rates post-implementation. |
| Infringement lasted longer than six months | Deployment of real-time market surveillance and transaction monitoring tools that provide immediate alerts on potential breaches, enabling rapid remediation. | Alert logs with timestamps, incident response reports, and documented evidence of swift corrective actions. |
| Repeated infringement | Use of a centralized rules engine for compliance checks across all business lines, ensuring consistent application of regulatory requirements and preventing recurrence of known issues. | Version-controlled rulebooks, system-generated reports showing consistent application of controls, and training records for relevant staff on the new system. |
| Negative impact on market quality or data integrity | Adoption of sophisticated transaction reporting solutions with built-in validation rules that check data for completeness and accuracy against regulatory requirements before submission. | Pre-submission validation reports, reconciliation records between firm data and ARM/NCA receipts, and metrics showing high data quality scores. |

![A precision optical component on an institutional-grade chassis, vital for high-fidelity execution. It supports advanced RFQ protocols, optimizing multi-leg spread trading, rapid price discovery, and mitigating slippage within the Principal's digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-optical-component-prime-os.jpg)

## Mapping Technology to Regulatory Mandates

A crucial element of the strategy is to draw a clear and unambiguous line between the firm’s technology stack and the specific articles of the MiFID II text. A regulator reviewing a firm’s case for mitigation should not have to guess how a particular software purchase contributes to compliance. The documentation must explicitly map the functionality of each RegTech tool to the precise regulatory obligation it is designed to fulfill. This demonstrates a thoughtful and structured approach to compliance, reinforcing the argument that the firm’s control environment is robust and well-governed.

The following table provides a non-exhaustive mapping of key MiFID II obligations to corresponding RegTech solutions, illustrating how technology provides a systemic answer to regulatory demands.

| MiFID II Obligation | Relevant Article | Corresponding RegTech Solution | Core Functionality |
| --- | --- | --- | --- |
| Transaction Reporting | Article 26 (MiFIR) | Automated Reporting Engine | Extracts, validates, and transmits transaction data to an Approved Reporting Mechanism (ARM) with full audit trail capabilities. |
| Best Execution | Article 27 (MiFID II) | Transaction Cost Analysis (TCA) & Best Execution Monitoring Platform | Systematically monitors execution quality against defined policies and benchmarks, producing RTS 27/28 reports and exception-based alerts. |
| Market Abuse Surveillance | Article 16 (MAR) | Market Surveillance System | Utilizes algorithms to detect potential instances of insider dealing, market manipulation, and other abusive practices across order and trade data. |
| Product Governance | Article 16(3) & 24(2) (MiFID II) | Product Governance & Target Market Identification Tool | Defines and manages target market criteria for financial products, monitors distribution, and documents product review processes. |
| Record Keeping | Article 16(6) (MiFID II) | Comprehensive Communications & Data Archiving Platform | Captures, stores, and makes searchable all relevant electronic communications and transaction records in a compliant, immutable format. |

![A transparent, convex lens, intersected by angled beige, black, and teal bars, embodies institutional liquidity pool and market microstructure. This signifies RFQ protocols for digital asset derivatives and multi-leg options spreads, enabling high-fidelity execution and atomic settlement via Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-of-institutional-digital-asset-derivatives-via-advanced-rfq-protocols-for-multi-leg-spreads.jpg)

## Constructing a Defensible Evidentiary File

An investment in RegTech is only as valuable as the firm’s ability to prove its worth during a regulatory examination. A proactive strategy involves the contemporaneous collection and organization of evidence that substantiates the firm’s commitment. This “evidentiary file” should be maintained as a living repository, ready to be deployed should the need arise. Its existence demonstrates that the firm views compliance not as a passive state but as an active, managed discipline.

- **System Selection and [Due Diligence](https://prime.greeks.live/area/due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)** ▴ Maintain all records related to the vendor selection process, including requests for proposal (RFPs), due diligence questionnaires, and the formal justification for choosing a particular solution. This proves the decision was considered and risk-based.

- **Implementation and Integration Documentation** ▴ Preserve project plans, system architecture diagrams, and records of user acceptance testing (UAT). This evidence shows the technology was integrated thoughtfully into the firm’s existing operational framework.

- **Validation and Audit Reports** ▴ Commission and store periodic independent reviews of the [RegTech system](https://prime.greeks.live/question/what-are-the-core-components-of-a-successful-regtech-implementation-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Reports from internal audit or a third-party consultant that validate the system’s effectiveness are exceptionally powerful pieces of evidence.

- **Staff Training and Competency Records** ▴ Keep detailed logs of which employees were trained on the new system, the content of the training, and any competency assessments performed. This demonstrates an organizational commitment to the proper use of the technology.

- **Performance Metrics and Reporting** ▴ Document the system’s performance over time. This could include metrics on data quality improvements, reductions in reporting errors, or the number of alerts generated and resolved by a surveillance system. Quantifiable results prove the investment delivered tangible compliance benefits.

![A sleek, open system showcases modular architecture, embodying an institutional-grade Prime RFQ for digital asset derivatives. Distinct internal components signify liquidity pools and multi-leg spread capabilities, ensuring high-fidelity execution via RFQ protocols for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-modularity-unveiled.jpg)

![A reflective digital asset pipeline bisects a dynamic gradient, symbolizing high-fidelity RFQ execution across fragmented market microstructure. Concentric rings denote the Prime RFQ centralizing liquidity aggregation for institutional digital asset derivatives, ensuring atomic settlement and managing counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-for-institutional-digital-asset-derivatives-2.jpg)

## Execution

The execution phase translates the strategic decision to invest in RegTech into a concrete, operational, and defensible reality. This is where a firm builds the factual foundation for a mitigation argument. It involves a rigorous, disciplined approach to system implementation, validation, and documentation.

A regulator will assess not the marketing claims of a software vendor, but the verifiable impact of the technology on the firm’s control environment. Therefore, the execution must be meticulous, creating a clear and auditable trail that connects the financial outlay for technology to a tangible reduction in regulatory risk.

> A successful mitigation argument is built on a foundation of quantifiable proof showing how technology systematically reduces compliance failures.

![A sleek, angular device with a prominent, reflective teal lens. This Institutional Grade Private Quotation Gateway embodies High-Fidelity Execution via Optimized RFQ Protocol for Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-crypto-derivatives-rfq-high-fidelity-execution-gateway.jpg)

## A Quantitative Model of Penalty Reduction

To understand the potential financial impact of a RegTech investment as a mitigating factor, one can model a hypothetical enforcement scenario. Consider two investment firms, “Alpha Investments” (with legacy manual processes) and “Beta Capital” (with a documented, validated RegTech reporting system). Both firms have an annual turnover of €200 million and are found to have committed the same breach ▴ significant errors in their MiFID II transaction reports over a period of seven months.

The regulator establishes a baseline penalty. However, the application of aggravating and mitigating factors, based on the firms’ underlying systems, leads to vastly different outcomes. The model below illustrates this divergence.

- **Establish Baseline Penalty** ▴ The regulator determines the breach is serious and sets a baseline penalty of 1% of annual turnover, which is €2,000,000 for both firms.

- **Apply Aggravating Factors** ▴ The infringement’s duration (seven months) triggers an aggravating factor for both. Per ESMA’s methodology, an infringement lasting longer than six months can carry a coefficient of 1.5.

- **Assess Systemic Weakness** ▴ This is the critical point of divergence.

<li>For **Alpha Investments**, the investigation reveals the errors stem from inconsistent manual data entry and poorly managed spreadsheets. The regulator deems this a “systemic weakness,” applying an additional aggravating coefficient of 2.2.

- For **Beta Capital**, the investigation finds that while errors occurred, they were caused by a misconfiguration that has since been corrected. The firm provides extensive documentation of its RegTech system, including validation reports and audit trails, demonstrating the system itself is robust. The regulator does not apply the systemic weakness factor.

</li>
- **Consider Mitigating Factors** ▴ Beta Capital presents its evidentiary file, showing proactive investment, swift remediation using the system’s audit logs, and cooperation. The regulator agrees to apply a mitigating coefficient, for example, 0.7, to reflect the firm’s strong control environment and proactive stance.

The resulting penalty calculation demonstrates the tangible value of the RegTech investment.

| Penalty Calculation Step | Alpha Investments (Legacy Systems) | Beta Capital (Validated RegTech) |
| --- | --- | --- |
| Annual Turnover | €200,000,000 | €200,000,000 |
| Baseline Penalty (1% of Turnover) | €2,000,000 | €2,000,000 |
| Adjustment for Duration (>6 months, Coeff. 1.5) | +€1,000,000 (0.5 Base) | +€1,000,000 (0.5 Base) |
| Adjustment for Systemic Weakness (Coeff. 2.2) | +€2,400,000 (1.2 Base) | €0 |
| Subtotal Before Mitigation | €5,400,000 | €3,000,000 |
| Adjustment for Mitigation (e.g. Coeff. 0.7) | €0 | -€600,000 (0.3 Base) |
| Final Calculated Penalty | €5,400,000 | €2,400,000 |

![An abstract system depicts an institutional-grade digital asset derivatives platform. Interwoven metallic conduits symbolize low-latency RFQ execution pathways, facilitating efficient block trade routing](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution-engine.jpg)

## The Narrative of Proactive Compliance

The story of how a firm uses RegTech is as important as the technology itself. Consider a mid-sized asset manager, “Orion Asset Management,” which identified potential inconsistencies in its best execution monitoring. Instead of waiting for a regulatory inquiry, the firm’s compliance and technology committees initiated a project to source and implement a new Transaction Cost Analysis (TCA) platform. The project began with a formal market scan and a rigorous due diligence process, documented in a vendor selection report that was approved by the board.

The chosen platform was not simply installed; it was subject to a three-month integration and testing phase. During this period, the project team ran the new system in parallel with the old manual processes, meticulously documenting data discrepancies and refining the system’s configuration. They conducted multiple rounds of user acceptance testing with the trading desk and compliance officers, gathering feedback and ensuring the system’s outputs were understood and actionable. All training sessions were recorded, and attendance was mandatory, with a short competency quiz administered at the end.

Once live, the system immediately began producing quarterly best execution reports under RTS 28, but the firm went further. The compliance team configured the system to generate weekly exception reports, which were reviewed every Monday morning by the head of trading and the Chief Compliance Officer. Each exception was investigated, and the resolution was logged directly within the system, creating a permanent, time-stamped audit trail. One year later, during a routine supervisory visit, the NCA requested evidence of the firm’s best execution arrangements.

Orion was able to produce a comprehensive file containing the vendor selection report, the parallel run reconciliation results, the UAT sign-offs, the training logs, and a full year’s worth of weekly exception review meetings with documented outcomes. The regulator was able to see a clear, auditable history of proactive self-improvement and robust control, which became a significant positive finding in their final report. This proactive, documented execution transformed the RegTech tool from a mere expense into a demonstrable asset of good governance.

> Demonstrating a RegTech system’s validated effectiveness is the cornerstone of any argument for penalty mitigation.

![Modular institutional-grade execution system components reveal luminous green data pathways, symbolizing high-fidelity cross-asset connectivity. This depicts intricate market microstructure facilitating RFQ protocol integration for atomic settlement of digital asset derivatives within a Principal's operational framework, underpinned by a Prime RFQ intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/modular-high-fidelity-execution-architecture-for-institutional-digital-asset-derivatives-rfq-protocol-integration-and-principals-operational-framework-optimization.jpg)

## An Operational Playbook for System Validation

A firm cannot simply assert that its technology works; it must prove it. A systematic validation process provides this proof. This playbook outlines the critical steps for ensuring a RegTech system is fit for purpose and for creating the necessary evidence to support a mitigation claim.

- **Initial Scoping and Vendor Due Diligence** ▴ Define the specific regulatory requirements the system must meet. Assess potential vendors not only on functionality but also on their own regulatory understanding, data security protocols, and support models. Document this entire process meticulously.

- **Data Integrity Verification** ▴ Before going live, conduct a full data lineage review. Ensure the data being fed into the RegTech system is complete, accurate, and timely. Reconcile sample outputs from the new system with source data to prove its calculations and transformations are correct.

- **System Integration Testing** ▴ Test the system’s interaction with all connected infrastructure, such as order management systems (OMS) or data warehouses. Confirm that data flows are seamless and that the introduction of the RegTech tool does not create unintended operational risks elsewhere.

- **Conformance and Stress Testing** ▴ For systems involved in algorithmic trading or reporting, conduct conformance testing against the relevant trading venue’s or ARM’s specifications. Perform stress testing to see how the system behaves under high-volume or high-volatility conditions, ensuring its performance does not degrade when it is needed most.

- **Periodic Independent Audits** ▴ At least annually, have the system and its surrounding processes reviewed by an independent party, either internal audit or a qualified external firm. This third-party validation is a highly credible piece of evidence for regulators.

- **Change Management and Ongoing Training** ▴ Maintain a rigorous change management process. Any update to the system or its rulebook must be tested and documented before deployment. Keep continuous training logs to ensure all relevant users, including new hires, are competent in using the system.

![A complex, intersecting arrangement of sleek, multi-colored blades illustrates institutional-grade digital asset derivatives trading. This visual metaphor represents a sophisticated Prime RFQ facilitating RFQ protocols, aggregating dark liquidity, and enabling high-fidelity execution for multi-leg spreads, optimizing capital efficiency and mitigating counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/sophisticated-multi-asset-rfq-architecture-visualizing-institutional-digital-derivatives-execution-liquidity-aggregation-and-prime-os-orchestration-for-high-fidelity-performance.jpg)

## References

- European Securities and Markets Authority. “Information on the methodology to set fines.” ESMA, 2020.

- European Parliament and Council of the European Union. “Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU.” Official Journal of the European Union, 2014.

- Yeoh, Paul. “MiFID II key concerns.” Journal of Financial Regulation and Compliance, vol. 27, no. 1, 2019, pp. 2-21.

- Bayley, Nick. “Why the FCA is still not enforcing MiFID II.” Compliance Monitor, 2019.

- European Securities and Markets Authority. “ESMA’s Technical Advice to the Commission on the application of administrative and criminal sanctions under MiFID II/MiFIR.” ESMA, 2021.

- Culley, James. “UK investment firms’ compliance with MiFID II’s algorithmic trading regulation.” Journal of Financial Regulation and Compliance, vol. 30, no. 5, 2022, pp. 589-604.

- Busch, Danny, and C. A. Van der Klaauw-Koops. “The Unfinished MiFID II/MiFIR Legislative Process.” Capital Markets Law Journal, vol. 11, no. 3, 2016, pp. 326-342.

- Prorokowski, Lukasz. “MiFID II/MiFIR ▴ A New Paradigm for European Financial Markets.” Journal of Financial Regulation and Compliance, vol. 23, no. 2, 2015, pp. 110-125.

![Abstract depiction of an advanced institutional trading system, featuring a prominent sensor for real-time price discovery and an intelligence layer. Visible circuitry signifies algorithmic trading capabilities, low-latency execution, and robust FIX protocol integration for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg)

## Reflection

The examination of RegTech as a mitigating factor in penalty calculations moves the conversation about compliance beyond a simple pass-fail paradigm. It reframes regulatory adherence as a function of operational architecture and systemic design. The presence of sophisticated, well-governed technology provides a compelling body of evidence, yet its ultimate value is contingent on the firm’s ability to articulate its purpose and demonstrate its effectiveness. The core question for any firm is not whether it has bought a compliance tool, but whether it has built a compliance ecosystem.

This perspective shifts the focus from reactive damage control to proactive architectural strength. How does the flow of data within your organization support verifiable compliance? Where are the points of potential failure in your manual processes, and how can they be engineered for resilience? The answers to these questions define the true strength of a firm’s control environment.

An investment in technology becomes a strategic decision about the fundamental character of the firm itself ▴ whether it is an organization that simply reacts to regulation or one that designs its operations with integrity at their core. The ability to demonstrate the latter is what ultimately transforms an expense into a powerful instrument of mitigation.

![Intersecting teal and dark blue planes, with reflective metallic lines, depict structured pathways for institutional digital asset derivatives trading. This symbolizes high-fidelity execution, RFQ protocol orchestration, and multi-venue liquidity aggregation within a Prime RFQ, reflecting precise market microstructure and optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-rfq-execution-liquidity-microstructure.jpg)

## Glossary

<a href="https://prime.greeks.live/area/regulatory-technology/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Interlocked, precision-engineered spheres reveal complex internal gears, illustrating the intricate market microstructure and algorithmic trading of an institutional grade Crypto Derivatives OS. This visualizes high-fidelity execution for digital asset derivatives, embodying RFQ protocols and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-execution-system.jpg)

## Regulatory Technology

Meaning ▴ Regulatory Technology, or RegTech, denotes the application of information technology to enhance regulatory processes and compliance within financial institutions. </a><a href="https://prime.greeks.live/question/what-are-the-primary-advantages-of-using-an-explicit-factor-model-over-pca-for-stress-testing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Internal hard drive mechanics, with a read/write head poised over a data platter, symbolize the precise, low-latency execution and high-fidelity data access vital for institutional digital asset derivatives. This embodies a Principal OS architecture supporting robust RFQ protocols, enabling atomic settlement and optimized liquidity aggregation within complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-precision-execution-system-microstructure.jpg)

## Aggravating Factor

Explicit factor models provide superior stress tests through interpretable, causal analysis of specific economic risks. </a><a href="https://prime.greeks.live/question/how-can-financial-institutions-quantify-the-return-on-investment-of-a-regtech-transformation-initiative/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract composition of interlocking, precisely engineered metallic plates represents a sophisticated institutional trading infrastructure. Visible perforations within a central block symbolize optimized data conduits for high-fidelity execution and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-layer.jpg)

## Regtech Investment

Quantifying RegTech ROI is a systemic valuation of enhanced operational architecture, risk mitigation, and capital efficiency. </a><a href="https://prime.greeks.live/area/transaction-reporting/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intricate core of a Crypto Derivatives OS, showcasing precision platters symbolizing diverse liquidity pools and a high-fidelity execution arm. This depicts robust principal's operational framework for institutional digital asset derivatives, optimizing RFQ protocol processing and market microstructure for best execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-microstructure-execution-system.jpg)

## Transaction Reporting

Meaning ▴ Transaction Reporting defines the formal process of submitting granular trade data, encompassing execution specifics and counterparty information, to designated regulatory authorities or internal oversight frameworks. </a><a href="https://prime.greeks.live/area/best-execution/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A luminous central hub with radiating arms signifies an institutional RFQ protocol engine. It embodies seamless liquidity aggregation and high-fidelity execution for multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-hub-for-optimal-liquidity-aggregation.jpg)

## Best Execution

Meaning ▴ Best Execution is the obligation to obtain the most favorable terms reasonably available for a client's order. </a><a href="https://prime.greeks.live/question/how-do-brokerage-firms-calculate-the-penalty-for-a-concentrated-position/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A geometric abstraction depicts a central multi-segmented disc intersected by angular teal and white structures, symbolizing a sophisticated Principal-driven RFQ protocol engine. This represents high-fidelity execution, optimizing price discovery across diverse liquidity pools for institutional digital asset derivatives like Bitcoin options, ensuring atomic settlement and mitigating counterparty risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-prime-os.jpg)

## Baseline Penalty

A brokerage firm prices the systemic instability of a concentrated position by levying a dynamic margin requirement. </a><a href="https://prime.greeks.live/question/how-does-the-regulatory-environment-influence-the-strategies-used-to-control-information-in-rfq-protocols/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting multi-asset liquidity channels with an embedded intelligence layer define this precision-engineered framework. It symbolizes advanced institutional digital asset RFQ protocols, visualizing sophisticated market microstructure for high-fidelity execution, mitigating counterparty risk and enabling atomic settlement across crypto derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-system-microstructure-dynamics.jpg)

## Control Environment

The regulatory environment dictates the terms of engagement, forcing RFQ information control strategies to evolve from simple discretion to a complex system of calibrated disclosure and documented diligence. </a><a href="https://prime.greeks.live/area/due-diligence/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, institutional-grade RFQ engine precisely interfaces with a dark blue sphere, symbolizing a deep latent liquidity pool for digital asset derivatives. This robust connection enables high-fidelity execution and price discovery for Bitcoin Options and multi-leg spread strategies](https://options.greeks.live/wp-content/uploads/2025/07/institutional-crypto-derivatives-rfq-engine-linking-deep-liquidity-pools.jpg)

## Due Diligence

Meaning ▴ Due diligence refers to the systematic investigation and verification of facts pertaining to a target entity, asset, or counterparty before a financial commitment or strategic decision is executed. </a><a href="https://prime.greeks.live/question/what-are-the-core-components-of-a-successful-regtech-implementation-strategy/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Precision-engineered components of an institutional-grade system. The metallic teal housing and visible geared mechanism symbolize the core algorithmic execution engine for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution-layer.jpg)

## Regtech System

A successful RegTech strategy architects a data-centric, automated system for proactive compliance and risk intelligence. </a>

**Tags:** [Approved Reporting Mechanism](https://options.greeks.live/area/approved-reporting-mechanism/), [MiFID II Penalties](https://options.greeks.live/area/mifid-ii-penalties/), [Transaction Reporting](https://options.greeks.live/area/transaction-reporting/), [Regulatory Technology](https://options.greeks.live/area/regulatory-technology/), [Best Execution](https://options.greeks.live/area/best-execution/), [Systems and Controls](https://options.greeks.live/area/systems-and-controls/)	

## Discover More

- 
### [What Are the Key Technological Requirements for Operating a Compliant Systematic Internaliser?](https://options.greeks.live/question/what-are-the-key-technological-requirements-for-operating-a-compliant-systematic-internaliser/)
![A metallic, modular trading interface with black and grey circular elements, signifying distinct market microstructure components and liquidity pools. A precise, blue-cored probe diagonally integrates, representing an advanced RFQ engine for granular price discovery and atomic settlement of multi-leg spread strategies in institutional digital asset derivatives. This optimizes capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-system-facilitating-high-fidelity-execution-price-discovery.jpg)

A compliant Systematic Internaliser requires an integrated technology stack for quoting, execution, and real-time regulatory reporting.

- 
### [How Should a Firm Structure Its Vendor Due Diligence for OMS and ARM Providers?](https://options.greeks.live/question/how-should-a-firm-structure-its-vendor-due-diligence-for-oms-and-arm-providers/)
![A precision-engineered metallic cross-structure, embodying an RFQ engine's market microstructure, showcases diverse elements. One granular arm signifies aggregated liquidity pools and latent liquidity. The opposing perforated arm represents high-fidelity execution and algorithmic trading parameters. Its central pivot symbolizes atomic settlement within institutional digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-microstructure-for-atomic-settlement.jpg)

A firm’s due diligence for OMS/ARM providers is a systemic risk analysis ensuring vendor congruence with its operational and regulatory architecture.

- 
### [What Are the Core Technology Implications of Adopting a MiFID II Compliant Execution Framework?](https://options.greeks.live/question/what-are-the-core-technology-implications-of-adopting-a-mifid-ii-compliant-execution-framework/)
![A deconstructed mechanical system with segmented components, revealing intricate gears and polished shafts, symbolizing the transparent, modular architecture of an institutional digital asset derivatives trading platform. This illustrates multi-leg spread execution, RFQ protocols, and atomic settlement processes.](https://options.greeks.live/wp-content/uploads/2025/07/deconstructed-principal-trading-system-revealing-core-mechanics-of-digital-asset-derivatives-execution.jpg)

A MiFID II framework mandates a re-architecture of trading systems for total data transparency and verifiable execution control.

- 
### [How Do Regulatory Frameworks Shape the Mandate for Quote Integrity across Trading Venues?](https://options.greeks.live/question/how-do-regulatory-frameworks-shape-the-mandate-for-quote-integrity-across-trading-venues/)
![Detailed metallic disc, a Prime RFQ core, displays etched market microstructure. Its central teal dome, an intelligence layer, facilitates price discovery. Protruding rods signify low-latency RFQ protocol data transmission, ensuring high-fidelity execution for digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/principal-operating-system-intelligence-layer-powering-digital-asset-derivatives-rfq-protocols-for-optimal-execution.jpg)

Regulatory frameworks establish immutable protocols for quote integrity, forming the foundational operating system for market trust and efficient capital allocation.

- 
### [How Should a Firm’s Compliance Framework Adapt to the Quote-Driven Nature of Institutional Options Trading?](https://options.greeks.live/question/how-should-a-firms-compliance-framework-adapt-to-the-quote-driven-nature-of-institutional-options-trading/)
![A sphere split into light and dark segments, revealing a luminous core. This encapsulates the precise Request for Quote RFQ protocol for institutional digital asset derivatives, highlighting high-fidelity execution, optimal price discovery, and advanced market microstructure within aggregated liquidity pools.](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-execution-framework-for-institutional-digital-asset-derivatives-request-for-quote-protocol-optimization.jpg)

A firm's compliance framework adapts to quote-driven trading by embedding systemic, data-driven oversight directly into the negotiated trade lifecycle.

- 
### [Can Algorithmic Trading Strategies Effectively Mitigate Compliance Risks in Both Lit and RFQ Environments?](https://options.greeks.live/question/can-algorithmic-trading-strategies-effectively-mitigate-compliance-risks-in-both-lit-and-rfq-environments/)
![A luminous, miniature Earth sphere rests precariously on textured, dark electronic infrastructure with subtle moisture. This visualizes institutional digital asset derivatives trading, highlighting high-fidelity execution within a Prime RFQ. It represents the delicate balance of price discovery and latency in an RFQ protocol, managing counterparty risk across global market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/global-digital-asset-derivatives-rfq-protocol-execution-engine-underpinning-institutional-market-microstructure-with-precision.jpg)

Algorithmic strategies embed compliance logic into the execution workflow, transforming risk mitigation from a check into an architectural feature.

- 
### [What Technological Architectures Support Multi-Jurisdictional Block Trade Compliance?](https://options.greeks.live/question/what-technological-architectures-support-multi-jurisdictional-block-trade-compliance/)
![A sleek pen hovers over a luminous circular structure with teal internal components, symbolizing precise RFQ initiation. This represents high-fidelity execution for institutional digital asset derivatives, optimizing market microstructure and achieving atomic settlement within a Prime RFQ liquidity pool.](https://options.greeks.live/wp-content/uploads/2025/07/optimizing-digital-asset-derivatives-rfq-through-prime-os-precision.jpg)

Technological architectures embed programmable compliance logic and cryptographic proofs to enable discreet, multi-jurisdictional block trade adherence.

- 
### [What Are the Regulatory Implications under Mifid Ii for Reporting Trades Executed via Rfq?](https://options.greeks.live/question/what-are-the-regulatory-implications-under-mifid-ii-for-reporting-trades-executed-via-rfq/)
![A precise, multi-layered disk embodies a dynamic Volatility Surface or deep Liquidity Pool for Digital Asset Derivatives. Dual metallic probes symbolize Algorithmic Trading and RFQ protocol inquiries, driving Price Discovery and High-Fidelity Execution of Multi-Leg Spreads within a Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-rfq-protocol-mechanism-for-digital-asset-derivatives-price-discovery-and-high-fidelity-execution-via-prime-os.jpg)

MiFID II mandates a dual-stream reporting system for RFQ trades, requiring public transparency and detailed supervisory data submission.

- 
### [How Does Technology Enhance Block Trade Auditability across Asset Classes?](https://options.greeks.live/question/how-does-technology-enhance-block-trade-auditability-across-asset-classes/)
![A sleek, metallic control mechanism with a luminous teal-accented sphere symbolizes high-fidelity execution within institutional digital asset derivatives trading. Its robust design represents Prime RFQ infrastructure enabling RFQ protocols for optimal price discovery, liquidity aggregation, and low-latency connectivity in algorithmic trading environments.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-control-for-optimal-market-microstructure-precision.jpg)

Technology embeds cryptographic proofs and distributed ledgers into block trades, forging immutable audit trails for unparalleled transparency and operational control across asset classes.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "Can a Firm&#8217;s Investment in RegTech Be Considered a Mitigating Factor in a MiFID II Penalty Calculation?",
            "item": "https://options.greeks.live/question/can-a-firms-investment-in-regtech-be-considered-a-mitigating-factor-in-a-mifid-ii-penalty-calculation/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/can-a-firms-investment-in-regtech-be-considered-a-mitigating-factor-in-a-mifid-ii-penalty-calculation/"
    },
    "headline": "Can a Firm's Investment in RegTech Be Considered a Mitigating Factor in a MiFID II Penalty Calculation? \u25b4 Question",
    "description": "A documented RegTech investment serves as tangible proof of robust internal controls, directly countering claims of systemic weakness in penalty assessments. \u25b4 Question",
    "url": "https://options.greeks.live/question/can-a-firms-investment-in-regtech-be-considered-a-mitigating-factor-in-a-mifid-ii-penalty-calculation/",
    "datePublished": "2025-08-13T02:59:40+00:00",
    "dateModified": "2025-08-13T02:59:42+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-high-fidelity-rfq-protocols.jpg",
        "caption": "A sophisticated digital asset derivatives trading platform, embodying a high-fidelity execution management system. Its prominent sensor enables precise price discovery and pre-trade analytics, while visible internal components underscore robust algorithmic trading and low-latency order book dynamics. This system exemplifies an institutional-grade Prime RFQ, designed for capital efficiency and best execution across RFQ protocols, ensuring optimal multi-leg spread trading and mitigating counterparty risk through advanced clearinghouse functions."
    },
    "keywords": [
        "Approved Reporting Mechanism",
        "Best Execution",
        "Compliance Framework",
        "Due Diligence",
        "ESMA Fines",
        "Market Surveillance",
        "MiFID II Penalties",
        "Penalty Calculation",
        "RegTech Mitigation",
        "Regulatory Technology",
        "Systemic Weakness",
        "Systems and Controls",
        "Transaction Reporting"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://options.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://options.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```


---

**Original URL:** https://options.greeks.live/question/can-a-firms-investment-in-regtech-be-considered-a-mitigating-factor-in-a-mifid-ii-penalty-calculation/
