The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Thomson Reuters Teams Up with Kx to Deliver Superfast MiFID II Solution

Thomson Reuters has teamed up with Kx to enhance its Velocity Analytics platform and deliver ultra-high-speed processing of real time, streaming and historical data to meet the requirements of Markets in Financial Instruments Directive II (MiFID II).

The platform has been refreshed and released as Version 8, with Kx high-performance computing technology replacing high-speed processing technology provided by Vhayu, a California based company bought by Thomson Reuters back in 2009. It supports use cases such as best execution, transaction cost analysis, and quantitative and systematic trading. It will also support multi-asset best execution and systematic internaliser determination in 2018. Brennan Carley, head of enterprise propositions at Thomson Reuters, explains: “MiFID II is a data problem. The challenge is how to source data, aggregate it and then use analytics to be compliant. Firms don’t necessarily have the content and tools required for compliance, although they need to demonstrate best execution and determine systematic internalisers in particular securities. We identified the need for a platform that could manage market data, firms own trading data and analytics, and decided to refresh Velocity Analytics, add new use cases and deliver a MiFID II solution.”

The combination of Kx technology with Velocity Analytics allows huge volumes of data from multiple sources to be processed in real time. By integrating the platform with Datascope Select and its pricing services, Thomson Reuters has expanded the historical and reference data available for processing on the platform. It has also developed adapters to integrate the platform with its enterprise platform so that firms can take advantage of existing infrastructure investments to access streaming analytics.

Carley says Velocity Analytics Version 8 will be delivered in phases, with the platform and adaptors to plug into data sources initially being offered to large firms that want to build their own models for MiFID II compliance. Later in the year, the company plans to begin releasing off-the-shelf models for smaller banks and banks with small IT teams. A best execution model is likely to be the first release, with a systemic internaliser determinator model due for release in December 2018.

The company is working with banks on more use cases for Velocity Analytics and will work with existing users of the platform, whose use cases are not primarily MiFID II and are more likely to be vwap calculations and building trading models, to migrate to Version 8 over time.

Carley expects the platform to find favour among existing and new clients. He concludes: “By taking our technology and content, and combining it with Kx technology, we have made it as easy and cost-effective as possible to implement MiFID II solutions.”

Related content

WEBINAR

Recorded Webinar: Maximising success when migrating big data and analytics to cloud

Migrating big data and analytics workflows to the cloud promises significant cost savings through efficient use of infrastructure resources and software that scales dynamically based on data volume, query load, or both. These are valuable gains for investment banks, but they can only be fully realised by taking a new approach to architecture and software...

BLOG

Behind the Scenes at Solidatus Following £14 Million Series A Funding

Having reported on Solidatus’ £14 million Series A funding last week, this week we go behind the scenes to talk to the company’s founders Philip Dutton and Philip Miller about their business philosophy, ambitions for Solidatus, and the challenges and opportunities of working with investors and growing the company through lockdown. After careers in financial...

EVENT

RegTech Summit New York City

Now in its 5th year, the RegTech Summit in NYC explores how the North American financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

RegTech Suppliers Guide 2020/2021

Welcome to the second edition of A-Team Group’s RegTech Suppliers Guide, an essential aid for financial institutions sourcing innovative solutions to improve their regulatory response, and a showcase for encumbent and new RegTech vendors with offerings designed to match market demand. Available free of charge and based on an industry-wide survey, the guide provides a...