Broadridge Financial Solutions acquisition of Message Automation allows the company to better serve trade and transaction reporting regulatory demands under MiFID II, according to David Campbell, a capital markets strategist at Broadridge.
While Broadridge had already integrated Message Automation services under their existing relationship, the acquisition is making it possible to integrate more of both parties’ key services, adds Campbell.
“For our buy-side clients, we see this as assisting in the shift to self-reporting versus delegated reporting,” he says. “For our sell-side clients, we see Message Automation providing them with a solution for MiFID II, upcoming regulations such as SFTR, and as a solution for those clients who are looking to improve the scalability of their trade and transaction reporting solutions and are using MiFID II as the opportunity to accomplish this.”
By adding Message Automation’s capabilities for harmonizing and distributing clearing reports from central counterparties (CCPs) and clearing brokers, Broadridge now can better address management of collateral and CCP related risks, according to Campbell. “Message Automation’s internal systems for risk, Treasury and collateral are able to consume richer data than is possible through existing processes, especially since the formats coming from CCPs are disparate and varied — including PDF-based reports,” he says.
That richer data, obtained by using a central data model, “better serves clients’ needs to have quality data within their processes and ensures that it is accessible to other uses within the organization,” says Campbell.