MiFID II and the Need for Data Transparency Across Fragmented Systems

The delay of the implementation of MiFID II to January 2018 provides a small amount of additional time for the wholesaleFS vertical to address the significant IT challenges associated with this new regulatory framework.

At the heart of these changes is the ability to identify the sources of, and track the changes to data. This will include the imposition of best execution obligations across all instruments to which MiFID II applies.

This covers all cash instruments including OTC derivatives and imposes far reaching disclosures including the construction and maintenance of the decision making audit trail for every transaction.

The need for end-to-end transactional data visibility will be the central driver underpinning the increased IT investment needed to support MiFID II. Data capture across multiple venues will be significantly more complex, requiring in some cases additional 65 data fields to be inserted into message schemas. Further, all data needs to be standardised into a common format and retained in an easily accessible format for five years.

This will require extensive investment and the complete automation of the processes across front, middle and back-offices. In fact, the automation and optimisation of the MiFID II compliance obligations may be central to the survival of some entities, as these changes are not confined to the sell-side. The buy-side will also have to introduce transaction tracking and reporting systems. For many buy-side firms this will be a significant hurdle.

Hattrick’s HELIXsystem Process Assembler delivers end-to-end visibility of every transaction across any fragmented IT environment. This is achieved without altering the messages, installing agents on data stores, significantly refactoring the production environment or having any material impact on system performance.

The HELIXsystem Process Assembler is a fully automated, patent protected, production ready capability. It provides complete end-to-end visibility of every transaction across all systems enabling the significant IT challenges presented by the introduction of MiFID II to be addressed in a fraction of the time and at a fraction of the cost of any alternative approach.

 

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