Deutsche Börse Group, an exchange operator and provider of transactions services, announced on Tuesday that it has joined forces with RegTek.Solutions which provides regulatory reporting solutions.

The two companies have entered into a strategic partnership to create a certified testing and pre-validation service. This will be available for clients of Deutsche Börse’s Regulatory Reporting Hub.

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The expected launch of this service is set for the fourth quarter of this year. The new platform aims to address feedback the exchange operator has received from its clients and regulators in regards to the obstacles in the quality and transparency of transaction reporting under the Markets in Financial Instruments Regulation (MiFIR).

Commenting on the new platform, Georg Gross, Head of Regulatory Services at Deutsche Börse said: “we are now able to offer our clients an additional service, which pre-validates their data before being sent to the Regulatory Reporting Hub.

“The result is a significant improvement in the quality of data we receive and submit for validation. The pre-validation process will allow our clients to identify any deviation from ESMA’s guidelines even earlier in the life cycle of their transactions.”

Pre-Validation Platform to Support a Range of Validations

The platform will be available to all of the executing entities currently using Deutsche Börse’s ARM (Approved Reporting Mechanism) service. The service will offer enhanced testing and data quality remediation capabilities, among a suite of other features.

According to the statement, it will also support a range of validations. This includes regulation-specific validation, acceptance criteria, messaging standards, enhanced quality validations, and best practice.

Brian Lynch, Co-Founder and CEO of RegTek.Solutions added: “reporting quality is a significant challenge for clients complying with MiFIR transaction reporting. ARMs help by offering a range of regulatory, client-agnostic and market-standard validations.

“Our new service offers a bespoke version of Validate.Trade to Deutsche Börse clients before the oversight of regulators. This allows clients to proactively test, monitor and prove the quality of their reporting before the process is completed.”