By Laura Burgess
IHS Markit has introduced a service designed to help firms within the scope of Markets in Financial Instruments Directive II (MiFID II) comply with RTS 28, an element of the regulation’s best execution requirements that mandates firms to publicly report their top five trading venues by asset class.
RTS 28 takes effect in April 2018, three months after the initial MiFID II compliance deadline, and is likely to be challenging for firms with complex trading activities as they must create up to four documents for each of the 22 asset classes covered by the regulation, including equities and multiple types of debt instruments, OTC derivatives, structured products and emissions credits.
The IHS Markit solution is a cloud-based service that allows firms to outsource the processes required for compliance with RTS 28. The service uses a propriety calculation engine to categorise trades, tabulate data according to MiFID II and host required reports on a public website. It also offers detailed analytics on demand and through regular scheduled reports.
Commenting on the RTS 28 compliance service, Michael Aldridge, managing director of trading services at IHS Markit, says: “We’ve created the calculation engine and programmed the business logic into our system so that investment firms don’t have to spend time or resources aggregating and classifying trade data.”