Electronic TradingRegulatory Reporting

End-to-end Transaction Reporting Solutions

A Complete Solution for Regulatory Compliance with Regimes Requiring Transaction Reporting

MiFID II, Article 50 and its corresponding Regulatory Technical Standard (RTS) 25 define new accuracy and granularity requirements for timestamps captured on various records and reports. The expectation is that participants will be required to timestamp every 'reportable event' in a transaction's lifecycle with millisecond accuracy and granularity. High frequency traders must record to an even more stringent 1 microsecond resolution with 100 microsecond accuracy.

Outcomes

  • Complete solution for regulatory transaction reporting obligations
  • Reduced cost to meet RTS requirements for MiFID II
  • Minimized changes to Trading Systems
  • Future proofing against more stringent future rules
  • Faster implementation of transaction reporting
  • Advanced error checking
  • Industry leaders in data precision and accuracy

Problem Overview

Growing Regulatory Risk, Cost And Complexity

The complexity and diversity of international regulatory reporting regimes such as MiFID, MiFIR, EMIR, Dodd Frank, ASIC, MAS continue to increase. What was previously a Bank or Venue requirement has spread to the Buy Side and across other market participants. Inclusion of new asset classes, new timing and richness standards for reporting, and lower exception thresholds for fines create a regulatory tail risk for organizations that influences strategy, financial and other business decisions.

As new regulations are introduced, organizations are trying to maintain compliance by:

  • Investing extensive financial resources
  • Retrofitting systems and data practices for compliance
  • Building large internal organizations to accommodate these changes
  • Meanwhile, this “tax” yields little in terms of new services or value for customers and shareholders – except for hopefully the avoidance or minimization of fines.

"Access to accurate, reliable and timely data will be critical to demonstrate the provision of best execution; as such, the majority of respondents to a recent TABB survey highlighted data concerns as their main challenge."

Solution Overview

Our end-to-end solution provides a flexible and complete answer to regulatory reporting. It obtains, normalizes, and validates the data. It identifies and tracks anomalies for clients. It publishes reports to various regulators.

Transaction Capture
Augment traditional back-office and middle-office data sources with real-time monitoring and passive capture of complete order lifecycle, including precision time-stamping. This rich data is streamed into a cloud-based reporting hub with other data collected from other systems.

Enrichment and Validation
Validate data from other sources based on formatting, completeness as well as user- defined, workflow-based, and product-based elements. Enrich trade information with reference data and incorporate high resolution timestamps for required regimes.

Reconciliation and Error Handling
Use rules engine to identify and handle errors, evaluate reportability. Reconcile transaction data with order lifecycle record to identify errors or omissions as an unequalled safety net measure.

Routing and Publishing
Format and deliver messages and reporting to the appropriate endpoints.

Ongoing Metrics and Monitoring
Realize additional business value with tools for ongoing trade lifecycle performance management, cyber-risk detection, and control and enhancement of the transaction reporting process.

Regulatory Tail Risk Mitigation
Data accuracy and precision sequencing are the answer. Both completeness of reporting as well as being able to demonstrate cause and effect via granular time sequencing and transaction lifecycle information are part of the innovative ways our solutions help reduce risk.

Our solution enables customers to:

  • Comply with evolving regulatory requirements
  • Enhance control of reporting process
  • Optimize resources
  • Remain protected

Highlights

  • Complete, end-to-end solution for transaction reporting compliance
  • Passive, real-time capture of all transactions from order communications
  • Nanosecond precision timestamp enrichment to meet MiFID II requirements and future regulations
  • Data enrichment, normalization, and error checking
  • Direct publishing of reporting to authorities
  • Authorized ARM under MiFID

Regulatory Reporting and Compliance Risk Reduction Solutions

Timestamp Enrichment

Granular, nanosecond, precision timestamping. Micro-sequencing incorporation of support for UTC time synchronization error checking.

Trade Capture

Passive, real-time transaction capture. Streaming data to support real-time reporting. Avoid overhead of continual system extract.

Secondary/Safety Net Reconciliation

Middle-office/back-office reconciliation with independence order record. New level of error checking and gap identification.

Transaction Database

Complete order lifecycle and transaction database. Leverage compliance tax investment to gain valuable client, venue and counterparty insight.



NEX Abide Financial, the award-winning regulatory reporting specialist, and Corvil, the leading real-time data analytics company for financial markets, have established a partnership to create a complete reporting solution which ensures accuracy, reduces ambiguity and risk leading to faster compliance. A market leader in global regulatory reporting solutions, NEX Abide Financial manages transaction reporting for banks, brokerage houses and asset managers in the UK, Europe and beyond.

Widely used by the largest banks and exchanges globally, Corvil’s real-time analytics enables market participants and venues to gain transparency into their digital business services, allows them to optimize the performance and customer experience of those services, detects cyber-threats and provides high-fidelity transaction information for business intelligence use.

Both organizations are respected for their data integrity and accuracy and have experience working with regulators. The partnership brings the rich data capture and streaming capabilities of Corvil’s product together with NEX Abide’s data normalization, enrichment and publishing solutions to provide a complete solution for customers seeking to satisfy their regulatory transaction reporting requirements and reduce risk of fines.