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SmartStream Combines Air, RDU to Offer Comprehensive Transaction Reporting for MiFID II

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SmartStream Technologies has combined its SmartStream RDU reference data utility with its SmartStream Air (Artificial Intelligence Reconciliations) solution to create a new offering that provides regulated entities with comprehensive reporting capabilities for MiFID II. The new solution – Transaction Reporting Reconciliation and Reporting Decision Control – aims to address regulators’ growing requirement for completeness and accuracy of firm’s transaction reporting processes.

At the heart of the new solution is SmartStream’s AI-based application, SmartStream Air – which allows handling of high volumes of potentially highly complex data in the cloud. SmartStream Air will reconcile all fields firms may need to enter for MiFID II transaction reporting purposes – offering near real-time matching. SmartStream has been working in recent years to incorporate AI into the transaction workflow.

SmartStream Air allows the solution to manage the diverse data structures typically found in financial institutions’ source systems. As a result, clients will be able to prove the integrity of their data, but without the effort and overheads associated with several reconciliations systems.

Within the new transaction reporting solution, SmartStream RDU’s API will allow firms to ascertain whether a financial instrument is Traded on a Trading Venue (ToTV) and therefore reportable under MiFID II. SmartStream RDU draws data from regulatory and industry bodies, assisting firms with their trade and transaction reporting, including avoiding either under- or over-reporting.

According to Jethro MacDonald, Product Manager – Innovations Lab, at SmartStream, “Clearly the FCA is already taking tough measures and has recently imposed large fines on banks where it considers failings have occurred on an extensive, long-term basis. Complying with the demands of MiFID II transaction reporting is complex, also proving data integrity to regulators can place a real strain on firms. This new solution will add an invaluable control for investment firms, allowing them to spot both data, and reporting decision irregularities in one control framework – showcasing to regulators that they’ve taken all the necessary steps to ensure their transaction reporting is both complete and accurate”.

The solution will also provide market participants with the necessary data to support their decision to file a report, or not, should that decision be questioned by regulators. In the future, it may even be possible to make anonymised correlations between users, creating a benchmark so that firms can check whether they are reporting in line with their peers, SmartStream says.

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