One of the biggest regulatory changes in recent years is poised to take effect this January in Europe – MiFID II. With its start date looming over financial venues for over a year, many groups have opted to redouble their focus on their own compliance efforts.
This atmosphere has created an uptick in demand for compliance solutions from one of fastest growing companies in the normalization and reconciliation space, Duco. To date, Duco has been inking numerous partnerships with financial venues, including three firms which will utilize Duco Cube, the company’s flagship reconciliation solution used for MiFID II reporting reconciliation.
The three firms include Redburn, one of Europe’s largest independent equities brokers, and two other global banks. These groups build on a large client list that includes some of the industry’s largest players, including NEX Group and others.
Ranith de Silva, Operations Manager at Redburn, commented: “MiFID II transaction data needs to undergo a number of enrichment processes between front office capture and the final report, which need to be replicated in the reconciliation process, covering large complex data sets. The quick deployment, flexibility and usability of Duco’s self-service application enables us to efficiently build towards this reconciliation process with very little technical support.”
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Duco Cube has emerged as one of the options of choice for firms looking to shore up their MiFID II obligations. Regular reconciliation is a key new requirement under the new regime, which Duco Cube can reconcile via daily consistency checks on transaction reporting data.
This is accomplished by updates sent to firms’ ARMs (approved reporting mechanisms) and/or the relevant regulatory authority. Companies will also be relying on Duco Cube to provide additional auditability and security surrounding a variety of internal processes.
“We have been advising on MiFID II reconciliation requirements across both buy side and sell side, and we are pleased to see continued momentum around our MiFID II offering. We are expanding our partnership programme in this space, and the recent agreement with NEX Regulatory Reporting means our technology will be used to provide end-to-end MiFID II compliance across a large and diverse client base,” added Jeffrey Gangl, Chief Revenue Officer of Duco.
Indeed, the list of venues tapping Duco for its solutions looks to only grow ahead of January 3, 2018. A number of recent studies have pointed to the industry’s stunning lack of preparedness in regard to new MiFID II regulations. With time running short, Duco is likely to garner a further round of accords in the latter stages of the year.
“Strategically building a robust data architecture based on the next generation of data applications is the way forward. As a result, we expect to see further adoption of Duco Cube up until the MiFID II January deadline and beyond, as firms evolve their processes around the regulation,” explained Christian Nentwich, CEO of Duco.