TRACE MiFID II Reporting

Effective January 2018, MiFID II and MiFIR usher in complex technology management challenges for transaction reporting and transparency. Transaction reporting requires investment firms to report all transaction details to regulatory bodies within a T+1 timeframe. This is challenging for many firms due to the broad coverage of financial instruments, stringent data quality demands, critical personal data protection requirements, and complex reference data management.

Furthermore, pre-trade transparency reporting requires trading venues and systematic internalisers (SIs) to publish quotes and depth of trading interests. Post-trade transparency reporting requires trading venues, SIs and sometimes investment firms to publish details of executed transactions. These requirements add significant complexity to reporting processes because of the need for real-time submissions along with having to regularly determine SI status and reporting obligations.

How can TRACE Reporting help?

TRACE Reporting is an award-winning reporting solution that addresses regulatory reporting needs across multiple regimes. It provides a high degree of automation and unparalleled data quality.

This has a number of key benefits for your business:

Lower operational costs

  • Fully automated reporting pares down manual operational effort
  • Extensive pre-submission data validations and up-front error detection minimise costly re-submissions
  • An interactive dashboard with centralized static data management and error reporting reduces the time spent on investigation and resolution
  • Regular updates and analysis on regulatory changes lessens the work required by in-house compliance and operations functions

Reduced compliance risk

  • Automated determination of MiFID II transaction and transparency reporting obligations helps ensure completeness of reporting
  • Automated reconciliation reduces the risk of misreporting and costly regulatory sanctions
  • Real-time alerts and comprehensive post-submission exception handling enables fast resubmission to meet reporting deadlines
  • Regulatory expertise provided by our compliance experts ensures industry best practices are being implemented to reduce risk of misreporting

Faster time to market

  • Integrated support for multiple regulatory jurisdictions enables easy implementation of new regimes that supports business expansion
  • Plug-and-play approach to data sources and reporting mechanisms (Trade Repositories, ARMs and APAs) enables fast and flexible support for additional asset classes and new regimes
  • Highly configurable data mappings and transformation rules enable quick implementation of new product types

Added value to business

  • A consolidated view of the firm’s trade and reference data from various internal and external systems provides additional MIS reporting and analytical capabilities

How does TRACE Reporting work?

TRACE automates your workflow

TRACE Reporting manages the end-to-end flow of information from various internal or external sources to downstream reporting mechanisms, including ARMs and APAs as well as ESMA systems such as FIRDS. The system covers transaction reporting, post-trade transparency reporting, commodity position reporting, reference data reporting, as well as SI determination. It features:
  • Static data management: source and maintain static data from internal and external systems, including LEIs, CFIs, ISINs, and MICs, and automatically enrich submissions with relevant static data.

  • Reporting determination: automatically determine which regimes a trade should be reported to through configurable business rules, and route the message to the appropriate transformation engine.

  • Personal data protection: maintain lookup codes that represent personal identifying data stored in ARMs and use those to enrich submissions. Pseudonymise and encrypt customer information at rest and on the move within TRACE.

  • Reconciliation: reconcile FCA and NCA responses with submissions made through TRACE, generate alerts for exceptions, and enable users to take appropriate actions on the exceptions.

  • Analytics: highlight compliance status across regimes and asset classes with timeliness of reporting, ACK/NACK ratios, and reconciliation status, and provide relevant MIS reports to the business and clients.

Simple, clear controls and real-time status updates

TRACE Reporting provides a web-based dashboard that shows submission status at each stage of the reporting workflow, alerts users to errors, and guides them through a rectification process. It also provides summary compliance statistics for management oversight and reporting.