Markets in Financial Instruments Directive (MiFID) and MiFID II Transaction Reporting

AxiomSL’s solution includes all of the data collection, consolidation, validation and transaction reporting functionality required for compliance with the Markets in Financial Instruments Regulation (MiFIR) and the Markets in Financial Instruments Directive (MiFID). It gives users complete confidence they are compliant by enabling them to reconcile their reportable transactions across multiple asset classes.

AxiomSL’s ‘one platform’ model means the same system can be used for all other regulatory reporting requirements, greatly reducing the cost and complexity of compliance.

MiFID and MiFID II: The requirements and challenges

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.

The scope of reporting will increase significantly when MiFID is succeeded by MiFID II in January 2018. MiFID II will require near real-time trade reporting to an Approved Publication Arrangement (APA) with 18 reportable fields. Transactions will be reported to an Approved Reporting Mechanism (ARM). In the Level II text for MiFID II there are 65 fields that will be required for reporting to the ARM. 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).

Along 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.

The AxiomSL solution

AxiomSL automates the entire trade and transaction reporting process for MiFID II. The AxiomSL solution identifies in scope trades and transactions to be reported. Trade data is collected in real-time, validated and sent to the APA. Transaction reporting is validated, sent to the ARM and reconciled against trade data. Any errors or rejections are flagged in queues for user correction. All trade life cycles are consolidated.

AxiomSL offers unparalleled transparency. A dashboard is available to allow users to monitor the entire reporting process. The dashboard can also create custom reports for any compliance or audit requirements.

Like MiFID the MiFID II trade and transaction reporting solution is built on the same platform as all of AxiomSL’s solutions. This ‘one platform’ approach ensures consistency across reports that are submitted as part of a regulatory compliance regime. AxiomSL’s solutions reduce the cost and complexity of regulatory compliance for firms.

Key Benefits

  • A single platform for all regulatory reporting requirements
  • Manages trade and transaction lifecycles
  • Reconciles trade and transaction data
  • Produces custom regulatory reports through Dashboard
  • Identifies all in-scope trades and transactions for MiFID and MIFID II
  • Applies validations in accordance with MiFIR and MiFID II
  • Reports in a timely manner to APAs and ARMs under MiFID II
  • Monitors errors and rejections from APAs and ARMs on queues under MiFID II.

MiFID diagram (general) - 2016

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AxiomSL | EMEA

+44 203 823 4600
info@axiomsl.com



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