IHS Markit (Nasdaq: INFO), a provider of information, analytics, and financial market data, today launched a new service aimed at helping investment firms comply with MiFID II’s RTS 28, which requires administering further regulated activities such as reporting on top five trading venues by asset class.
Effective April 2018, investment firms will be required to publish their first ever disclosures regarding execution venues and quality of execution, under the guidance of MiFID II’s RTS 28.
The cloud-based solution from IHS Markit enables European firms to extract the relevant trade data from their order management systems, categorizing customers and trading activity to determine the appropriate reporting templates.
7 Habits of a Highly Effective DeFi TraderGo to article >>
Broadly speaking, the latest addition to the group’s product suite allows a firm to outsource the key data classification processes required for compliance, which finally requires placing the end products on a public website where anyone can view and download them.
Michael Aldridge, Managing Director of Trading Services at IHS Markit, commented: “It’s easy to underestimate the effort required to comply with RTS 28. Smaller firms with uncomplicated trading activity might find compliance straightforward, but as a firm’s activity increases in complexity, so does its reporting obligation.”
He added: “As with so many financial industry regulations, the risk with RTS 28 is that compliance teams focus on the mechanics of compliance rather than adding value to the enterprise by truly monitoring and analyzing execution quality. We’ve created the calculation engine and programmed the business logic into our system, so that investment firms don’t have to spend time or resources aggregating and classifying trade data.”