[ A D V E R T O R I A L ]
SOLVING THE MIFID II
DATA CONUNDRUM
The TRADE talks to Ullink chief product officer, Richard Bentley, about MiFID II and
it’s impact on trading technology, data requirements and post-trade processes.
The TRADE: Ullink has been talking
about MiFID II a lot recently – how
big is the impact on your roadmap ?
Richard Bentley: MiFID II has huge
impacts on trading technologies
and we are working hard to ensure
our existing products are extend-
ed to support new requirements.
As a vendor of a broad range of
connectivity and trading solutions,
the impacts cut across most of our
products. We have also identified
some areas where clients will need
additional support in the form of
new products we are developing to
sit alongside our existing offerings.
This will help our clients take
advantage from any necessary
regulatory investment.
TT: What aspects of participants’
technology stack are most impacted
by MiFID II?
RB: The impact is broad, spanning
connectivity such as FIX engines
which need to add and validate
new tags, pre-trade risk gate-
ways with new risk controls, algo
engines and smart order routers,
which need to handle new market
models, and OMS solutions, which
must apply new trading rules and
carry additional information for
MiFID instruments. Perhaps the
biggest impact is on post-trade,
with new requirements for trade
and transaction reporting, best exe-
cution and order record keeping,
requiring major revisions to partic-
ipants’ technology stacks.
TT: You recently announced a new
product for trade reporting – can
you tell us more about that ?
RB: MiFID II requires partici-
pants to provide more data in their
trade reports, for a broader set of
instruments, and to do so almost
immediately after execution. The
logic determining who should
report and what data should be
reported is more complex than in
the current regime. The reporting
venues are also changing, offering
various coverage of instruments
and heterogeneous commercial
models. The need for a fully-au-
tomated, real-time trade report-
ing solution is clear, which can
handle the complex rules and data
requirements, centralise com-
munication with the venues, and
sit under all participants’ OMSs
across different asset classes to
provide a single user interface to
monitor reporting activities, cancel
and modify reports, and deal with
exceptions.
TT: Do you see a need for further new
products focused on post-trade ?
RB: Underlying much of the new
regulation is the need for a com-
plete biography of everything that
happens with a client order. In a
broker, many different systems will
touch a client order and they must
all account for everything they do
as part of the record. At TradeTech
we will announce a new product
to collect and normalise data from
different systems to reconstruct
the chronology of events for client
orders in real-time. This central
engine will feed systems for trans-
action reporting, best execution,
trade surveillance and more, with
complete, normalised data.
Issue 51
TheTradeNews.com
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