NEX Regulatory Reporting Embarks on Bid to Become an SFTR Trade Repository

NEX Regulatory Reporting will be gearing up for the rollout of a newly dedicated reporting solution, following the issuance of the final technical standards from ESMA. In tandem, the group will be applying to become a trade repository for the Securities Financing Transactions Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term (SFTR), which will come into effect in 2019.

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NEX Regulatory Reporting is the result of the acquisition of Abide Financial back in October 2016. The deployment of a focused reporting solution will help support its existing client base. In particular, adding the SFTR trade repository and solution to its already robust Global Reporting Hub will provide clients with an end-to-end solution for the securities lending and repo markets.

Ken Pigaga, CEO of NEX Optimisation, commented: “While we await the final technical standards from ESMA, we have begun to put the building blocks in place for an SFTR solution and trade repository which will not only support our existing client base within NEX, but also the wider securities lending and repo markets.”

“It’s important that service providers and clients alike begin to prepare for the impending regulation now, to avoid the last-minute rush for compliance that many in the market are currently experiencing ahead of MiFID II,” he reiterated. NEX Regulatory Reporting has been planning for MiFID II for months, having previously garnered authorization from the UK’s Financial Conduct Authority (FCA) for Abide Financial as an Approved Publication Arrangement (APA) in the new regime.

MiFID II and its upcoming implementation will be an extensive area of focus at the 2017 Finance Magnates London Summit next week at Old Billingsgate. This include multiple panel discussions and seminars specifically dedicated to focusing on the new regulation. Mark Kelly, Director of Professional Services at NEX Regulatory Reporting, will be participating in the discussion.

The latest initiative from NEX will Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat Read this Term multiple elements of its overall services suite, helping connect BrokerTec and ENSO platforms. This will facilitate the automatic transfer of transaction data to the SFTR trade repository, pending issuance of the final technical standards from ESMA. The process is still in review by the European Commission, as ESMA is expected to release the final draft technical standards within the iupcoming months.

Such a utility will be instrumental in streamlining both platforms. BrokerTec EU repo platform currently processes 10,000 repo trades per day for over 90 clients, while the ENSO platform services over 100 hedge fund and asset management clients. The advent of a unified solution will be an instrumental service for NEX’s growing client base.

“While most markets are used to a degree of regulatory reporting under EMIR, MiFID I and in now preparing for MiFID II, securities lending has to date been an unregulated market and so the introduction of SFTR will impact many global and regional banks and the buy side. Pending detail on the regulatory technical standards, we look forward to launching a complete SFTR solution and providing direct reporting access to NEX’s BrokerTec and ENSO clients,” added Collin Coleman, Head of NEX Regulatory Reporting.