Nordic financial services group SEB has selected recently merged Itiviti and ULLINK to implement a solution for client quote management and systematic internalisation as required by Markets in Financial Instruments Directive II (MiFID II). The solution allows a broker acting as a Systematic Internaliser (SI) to comply with MiFID II requirements addressing quote management, pre-trade transparency, reporting and best execution.
Since the introduction of MiFID II in 2018, brokers acting as liquidity providers in MiFID instruments must comply with new rules addressing client Request for Quote (RFQ) management, quote publication and reporting. ULLINK’s UL QUOTE solution, a modular extension to ULLINK’s Order Management System (OMS), enables brokers to receive cross-asset class RFQs and direct them to the most appropriate source of liquidity, including internal options.
Itiviti’s Systematic Internaliser provides high performance and scalable auto quoting functionality and efficient multi-asset class internalisation, with support for order and RFQ driven interaction with external systems. Pre-trade and post-trade quote publication is automated, as is capture of relevant data for record keeping and reporting.
Christer Wennerberg, product manager, equities, at SEB, says: “We have worked closely with ULLINK and Itiviti to ensure the new Systematic Internalisation solution meets our business objectives as well as compliance requirements. ULLINK’s modular architecture allows us to easily integrate the new extension with our existing ULLINK OMS and connectivity platform, as well as with Itiviti’s Systematic Internaliser to extend the services we can offer our customers. Our decision to register as an SI under MiFID II was facilitated by the timely availability of the combined turnkey solution.”
Richard Bentley, chief product officer, ULLINK, adds: “The changes in market structure due to MiFID II present challenges as well as opportunities for brokers. SEB has embraced these changes to innovate solutions and realise new business opportunities. UL QUOTE is the latest output from a long and successful collaboration between ULLINK and SEB that ensures we continue to build products that help our clients achieve their business goals.”
SEB has longstanding relationships with ULLINK and Itiviti, while Wennerberg is familiar with all sides of the relationship having left SEB to join Itiviti and run its SI business and then move back to SEB.