NEX Regulatory Reporting has consistently been shaping its services suite with MiFID II regulations in mind. In tandem with the recent implementation of MiFID II legislation, the group also managed to introduce a new short code identifier service, tapped the ‘Industry Standard Common Identifier’ (ISCI).
Such services are helpful for firms looking to manage MiFID II obligations while also meeting future GDPR requirements. The ISCI service has several advantages as well, including the ability to protect anonymity, ensuring operational efficiency and future compliance with a shifting regulatory climate.
Collin Coleman, Head of NEX Regulatory Reporting, commented: “Providing a secure data repository for personal information that can be used by the entire market will reduce the data management and storage costs for all involved and ensure that the data has been validated to meet all regulatory standards. We’re also enhancing data protection by investing in highly sophisticated data security.”
MiFID II has already dramatically changed the requirements firms are facing. Under these regulations, all market participants are take more broad-based effort to ensure transparency. This includes tracking personal data of the decision maker or client responsible for the execution of the transaction in reports so they can be identified by the regulator.
Ahead of the upcoming GDPR requirements that are slated for May 25, 2018, ISCI will also look to help firms to reconcile these requirements. ISCI represents highly encrypted service, utilizing a personal identifier information (PII) that can be uploaded either via the HTML 5 interface or over SFTP connection allowing for integration with internal HR or middle office systems.
Ahead of MiFID II, nearly 140,000 individual short codes representing 2,140 individual LEIs had already been uploaded to ISCI from member firms, with the sole intent of transaction reporting and order record keeping.
Of note, the inputted data is validated against ESMA standards as part of the upload process to ensure maximum compliance. All personal data is secure and stored in an encrypted ‘vault’ and data protection is guaranteed via multiple security protocols. This includes AWS Key Management Services for encryption and Okta-provided multifactor authentication.
“MiFID II is big enough challenge for firms without the introduction of GDPR. By connecting to ISCI, we have not only future-proofed our MiFID II solution against the upcoming regulation, but those of our member firms as well,” noted Julien Lee, Head of Architecture, TP ICAP.