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

Upcoming Webinar: Cross-Regulation Data Consistency and Accuracy

Date: 1 November 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Regulatory reporting obligations continue to expand, bringing with them more overlaps of data elements across reporting regimes. As many firms struggle with the accuracy and completeness of individual reporting obligations, regulators have increasingly begun to focus on cross-regulation data...

BLOG

Bloomberg Wins A-Team Group Award for Most Innovative ESG Data Solution

Bloomberg has won the award for Most Innovative ESG Data Solution in A-Team Group’s Innovation Awards 2022. The awards celebrate innovative projects and teams across vendor and practitioner communities that make use of new and emerging technologies to deliver high-value solutions for financial institutions in capital markets. Bloomberg’s ESG data solution was selected as a...

EVENT

RegTech Summit London

Now in its 6th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

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...