About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

FlexTrade Adopts SmartStream RDU’s SI Registry for MiFID II Compliance

Subscribe to our newsletter

By Uri Inspector, Staff Reporter

FlexTrade has integrated SmartStream RDU’s Systematic Internaliser (SI) Registry into the FlexTrader execution management system (EMS) to help FlexTrade customers comply with new MiFID II reporting regulations coming into force from September 2018. The development will allow FlexTrade clients to ascertain the SI status of counterparties before they decide to trade with them.

Understanding the SI status of counterparties affects firms’ trade and transaction reporting obligations. From September 1, SIs will be required to report their quotes and trades to the marketplace across all instruments (with a few exceptions in the commodities and derivatives markets) through a new framework of pre- and post-trade reporting created by MiFID II.

Furthermore, the regulation places greater responsibility on SIs as the counterparty mostly charged with fulfilling trade reporting obligations within 15 minutes (five minutes after 2020) of execution. Reporting responsibilities include recording details of the trade, as well as reference data describing the assets and counterparties involved in the transaction.

The SmartStream SI registry – borne out of a collaboration between SmartStream RDU and a group of Approved Publication Arrangements (APAs) – allows the growing population of SIs to register the details of the financial instruments and asset classes for which they are providing services in a single centralised register. The registry enables traders, in this case Flextrade clients, to perform a pre-trade check before they decide on using an SI or non-SI as a counterparty, determine which counterparty should report and provide much needed transparency to the market.

Through an API, SmartStream RDU’s SI registry will be imbedded into the send order ticket on the FlexTrader EMS – FlexTrade’s broker-neutral algorithmic trading platform for equities, foreign exchange and listed derivatives – so that when a trader is sending an order and selecting a broker, the call to RDU SI registry API is made. This is part of FlexTrade’s open architecture approach, so mutual clients of FlexTrade and RDU will have a ready-made integration available.

According to Peter Moss, CEO of SmartStream RDU, “The SI Registry offers transparency that is needed as part of the trade work flow and integration into FlexTrader EMS, making it easy for our mutual customers to make more informed choices. With the mandatory SI regime commencing from the 1st September this year, we see more brokers offering SI services and growing demand from clients to understand who is offering what.”

FlexTrade says its integration with the SmartStream RDU is fully cross-asset and embedded directly into the send order ticket as a flag to identify whether the selected counterparty is operating as an SI in the given instrument, optimising firms’ efforts to ensure best execution.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The emerging structure of the institutional digital assets market

As interest in trading digital assets continues to increase among institutional investors, so too does the need to focus on market structure, regulation and trading solutions. For financial institutions that get it right the rewards will be significant, but it is not necessarily easy and the challenges are many. This webinar will consider how digital...

BLOG

Quant Integrates with Make to Enable Automated Digital Asset Workflows

Quant, specialists in blockchain for finance, has integrated with automation software provider Make, to bring together Quant’s Overledger, a blockchain-agnostic API platform, with Make’s code-free automation software. The integration enables the creation of automated workflows for managing digital and tokenised assets, a process which traditionally requires substantial coding knowledge. By offering a more accessible, code-free...

EVENT

Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 19th at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

FATCA – The Time to Act is Now

The US Foreign Account Tax Compliance Act – aka FATCA – raised eyebrows when its final regulations requiring foreign financial institutions (FFIs) to report US accounts to US tax authorities were published last year. But with the exception of a few modifications, the legislation remains in place and starts to comes into force in earnest...