Corvil has extended its network data capture and analytics platform to deliver a Markets in Financial Instruments Directive II (MiFID II) compliance solution that is applied as an overlay to existing infrastructure and integrates a lightweight agent that collects time-stamped events from software applications.
The solution uses an independent system to gather precision data needed for MiFID II reporting and forensics, and is deployed as a non-intrusive overlay that sees all trading activity without the need for system configuration or an IT overhaul. The application agent captures data events within software applications and can be plugged into pretty much any trading system.
In terms of MiFID II coverage, the Corvil platform meets requirements that are specified in the European Securities and Markets Authority’s (ESMA) Regulatory Technical Standards (RTS) and include clock synchronisation, market transparency and reporting, pre- and post-trade risk, and best execution. There is also provision to minimise threats from cyber attacks, which is also noted in the ESMA standards.
Donal Byrne, CEO at Corvil, explains: “We have evolved the Corvil platform that monitors low latency environments on a precise timescale to provide a real-time precision data capture and analysis engine that can produce data required by the ESMA rules.”
The platform captures trade events off the network and achieves time-stamp precision of 1 microsecond or better, and time-stamp synchronisation within 100 microseconds of Coordinated Universal Time (UTC). The application agent collects time-stamped data events and forwards them to a collection engine. All the network and agent measurements, and time stamped reports for trading venues, are then assembled in Corvil’s internal store, normalised and checked to ensure they are sequentially correct. The trade execution clock synchronised data is then streamed via an application programme interface (API) into a data store where it can be used for MiFID II reporting.
As well as providing MiFID II compliance, the platform offers new data sets. David Murray, chief business development officer at Corvil, says: “With the Corvil MiFID II solution, investment firms get the added benefit of a rich set of highly accurate, precise data that can be used for advanced analytics purposes to improve trade strategies and algorithms, provide greater insight into client experience, and optimise systems.”
Corvil is working with clients on the final details of its MiFID II solution and has made the application agent, which is free of charge, available for trial immediately ahead of general availability next month. The complete solution is due to be in beta test early next year to ensure it is operationally proven before go live in time for the January 2018 MiFID II compliance deadline.