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

OTCX-SimCorp Partnership Takes On MiFID II Compliance

Subscribe to our newsletter

OTC derivatives multi-dealer platform OTCX’s recently announced partnership with investment management solutions provider SimCorp makes the OTCX Request For Quote (RFQ) platform more widely available – and capitalises on the platform’s value for MiFID II compliance, according to Nicolas Koechlin, CEO of OTCX.

“We started the OTCX concept a little before MiFID II kicked in,” he says. “It kept frustrating me to see how manual the processes were for many of the fund managers and transactions I was working with. Internal systems were getting quite sophisticated, so we could generate digital structured messages, but it had to be communicated on chat or voice. I wanted to see if we could bring the platform process to a wider range of instruments, so we could capture all these different styles and bring them into a structured format.”

SimCorp has integrated the OTCX RFQ platform into its Order Manager, facilitating trade reconstruction, best execution policy compliance and application of required timestamps. MiFID II adds new rules governing OTC derivatives transactions, and the OTCX RFQ platform helps support compliance with those rules.

“MiFID II forces people to be more transparent about their process and be able to evidence that on demand,” says Koechlin.

Australian fund manager Merlon Capital Partners, a SimCorp client, tested the OTCX platform, and under the new partnership, Merlon can directly source and trade equity derivatives. OTCX, according to Koechlin, plans to build on the reach it is gaining through SimCorp by pursuing new user firms directly, including more asset management firms in Australia and the Asia-Pacific region.

OTCX also offers trading of interest-rate swaps and inflation swaps, and is planning to roll out capability for cross-currency swaps. The platform is testing its services with ten Tier 1 firms in London and a global firm’s US arm, Koechlin adds.

“We developed what we think is the first dealer-to-client cross-currency swap RFQ model,” he says. “With SimCorp, we’re the only ones to offer end-to-end integration around instruments like cross-currency swaps.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Deploying market infrastructure managed services

Traditionally, trading organisations have procured and managed hardware themselves or through a third-party to support data services in a hosted environment – but as large firms look for efficiencies and smaller firms seek external help so they can focus on their core business, a shift in infrastructure ownership is needed. This can be achieved by...

BLOG

PRA Package of Regulatory and Data Strategy Change Planned for Completion by 2026

The Prudential Regulation Authority (PRA), which regulates and supervises financial services firms as part of the Bank of England, is planning to complete its RegTech and data integration strategy by 2026, bringing in a package of change including a new ‘look and feel’ to regulation, and refinements to what data is collected, how it is...

EVENT

Data Management Summit London

Now in its 12th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore the evolution of data strategy and how to leverage data to drive compliance and business insight.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...