Markets in Financial Instruments Directive (MiFID) and MiFID II Trade and Transaction Reporting
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AxiomSL’s strategic regulatory platform is designed to help our clients with all current and future global Trade and Transaction Reporting requirements. All of the data collection, consolidation, validation and submission required for compliance with any and all transaction reporting regulations and directives is available on our single universal solution.
AxiomSL’s solution enables clients to easily manage their MiFID and MiFID II reporting requirements by detecting all in-scope trades and transactions, aggregating and validating the necessary data, and submitting relevant data to the Approved Publication Arrangements (APAs) and Approved Reporting Mechanisms (ARMs) of your choice in their respective formats and time frames.
AxiomSL’s ‘one platform’ model also supports many other types of regulatory reporting in jurisdictions all over the world. By using the same system for all of your regulatory reporting needs AxiomSL can greatly reduce the cost and complexity of regulatory compliance.
Minimizing the cost of compliance:
AxiomSL’s single platform is designed to adapt to all existing internal and external regulation requirements across the enterprise. The platform provides the flexibility to adapt to constantly changing multijurisdictional regulations, empowering financial firms to calculate, aggregate, enrich, reconcile and validate data across siloed systems seamlessly.
By separating data management from the regulatory template, AxiomSL’s platform ensures fast and cost-effective upgrades. AxiomSL monitors all of its solutions in real near time, ensuring that that it will always be up to date and enabling users to test new regulatory developments well in advance of ‘go live dates’.
Reducing the reporting burden:
AxiomSL’s platform eliminates many manual enrichment processes greatly reducing the size of the operational team required to perform compliance related tasks. Our clients are given the ability to automate workflow processes, enabling them to scale their business faster with less dependency on expensive and time consuming back office processes. Additionally pre-submission validation checks allow our clients to proactively deal with errors before submission, thereby minimizing resubmissions and ensuring data quality.
AxiomSL’s platform keeps track of changes even down to the lowest level of granularity to the source data which then remains fully auditable. Our platform has a complete drill-down capability to the source data to quickly identify exceptions, missing or incorrect data.
Transparency and control:
AxiomSL’s platform enables users to have full transparency of the entire workflow since the source data is never transformed during the process. Source data is protected to ensure that no unauthorized changes are made. Personal information can be masked and made accessible to only permissioned users. All changes to the system or data are logged creating a fully auditable trail.
AxiomSL’s single platform allows for global oversight of multijurisdictional requirements and deadlines and a controlled sign-off process on reports prior to submission. Email alerts can be added as part of the workflow process to inform business, technical and IT users where things have failed/passed or to remind users of impending deadlines or missed requirements.
Due to the architecture of AxiomSL, we support quick integration capabilities to new or additional Approved Publication Arrangements (APAs) and Approved Reporting Mechanisms (ARMs) providing flexibility for our clients to change or add APAs and ARMs easily. Our solutions can easily be scaled for multi-jurisdiction activities and support multi-threaded, multi-tier component based architecture (including load balancing).
Regulators expect comprehensive and granular reporting, signed off at the board level. This requires both accurate reports and high-quality data, supported by effective data governance. Failure to meet such requirements or prove that controls are in place to identify discrepancies can lead to fines and higher capital limits that will push up firms’ costs.
With increasing data challenges, the unarguable fact is that today major financial institutions around the world are focusing on lineage, data quality, integration and metadata to establish a solid foundation for data accuracy and process governance. This includes showing and reporting on how all upstream and downstream objects have traveled and were impacted by a change to that data throughout the entire process, with an audit trail and validation checks at the business rule or report level, allowing complete control over their reporting.
Therefore, our clients have a much greater level of trust in their data as they can track when changes were made and are able to trace and demonstrate the impact of this change. Unlike other vendors, we’re agnostic on the source format, and over the years our data integration capability has become our flagship which enables us to deploy strong global and/or regional automated processes to strengthen data governance and enhance banks’ ability to better understand and manage their risk and regulatory exposure.
The MiFID directive is intended to ensure competition and investor protection in the European Union (EU). To do this, it requires market participants to report on trades and transactions that take place on regulated markets to the European Securities and Markets Authority (ESMA).
The scope of reporting will increase significantly when MiFID is succeeded by MiFID II on January 2018. MiFID II will require near real-time trade reporting to an APA with 18 reportable fields. Transactions will be reported to an ARM. In the Level II text for MiFID II there are 65 fields that will be required for reporting to the ARM. Both of these requirements must be met by both counterparties in every trade and transaction. Exchanges will also report to ESMA. Furthermore unlike MiFID, MiFID II includes reporting of financial instruments that are traded on regulated markets (RM), multilateral trading facilities (MTF) and organized trading facilities (OTF).
The reporting timeframe is also challenging with near real-time trade reporting and transaction reporting (T+1) a reconciliation between front office trades and subsequent transactions must be undertaken. Transaction reports shall be provided in an electronic and machine-readable form and common XML template in accordance with the ISO 20022 methodology. To continually meet such a tight deadline and remain compliant a scalable reporting solution is required.
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