TRAction Fintech has announced this Wednesday the launch of a new solution that aims to help investment managers in the United Kingdom and Europe meet their MiFID II obligations.
TRAction is a regulatory reporting services provider which specializes in regulatory over the counter (OTC) derivatives transaction reporting. The new solution, named Execution Monitor, announced today helps investment managers monitor and give their clients the best execution outcomes.
In particular, the Best Execution Monitor compares transaction reporting data against Refinitiv data from the time a trade has been executed. Based on this information, the software provides statistics on the quality of pricing and execution.
Commenting on the release of Best Execution Monitor, Craig Allison, of FP Markets said in the statement: “While well intentioned and a step in the right direction, we found the MiFID II best execution legislation vague and lacking clear procedures.”
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“Using the TRAction fintech platform, the procedure and logic is clearly defined giving us the ability to view all transactions as compared to the equivalent Reuters data as well as being displayed in a graphical report.”
Confusion over MiFID II reporting remains
According to TRAction, the company launched the new product as the industry was in need of more sophisticated best execution analysis. As shown by a freedom of information (FOI) request carried about consultancy Duff & Phelps, approximately one in five investment firms are in talks with the Financial Conduct Authority (FCA) regarding errors in their transaction reporting under the regulation.
“With numerous firms still not getting their transaction reporting up to scratch two years on from MiFID II, there has never been a more pressing need to understand the quality of trades being executed,” added Quinn Perrott, co-CEO of TRAction.
“Our new solution leaves no stone unturned for investment managers. All trades will be required to be monitored, not just the ones required under the transaction reporting rules, but those trading on non-MiFID II trading venues.”