July 10, 2018
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FlexTrade (@FlexTrade) and The SmartStream Reference Data Utility (RDU) today announced the integration of the SmartStream RDU with the FlexTRADER EMS (execution management system). The integration offers mutual clients the ability to embed SmartStream RDU’s Systematic Internaliser (SI) Registry information directly into the send order ticket, providing much needed clarity on counterparty SI status, prior to key 2018 MiFID II milestone dates.
The SI Registry fills a gap in the MiFID II reporting regime, which requires that industry participants identify whether trading counterparties are SIs for the financial instrument that they are trading, so that they can determine which counterparty must report the trade. However, no mechanism is provided in the MiFID II framework to determine SI status. The problem is especially acute for asset managers and hedge funds, who have not built the infrastructure needed to support reporting, and rely on their SI counterparties for those functions.
The SI Registry is a collaboration between the SmartStream RDU, the Approved Publication Arrangement (APA) community and their SI clients to provide a consolidated register of systematic internalisers mapped to instruments. It will become increasingly important as the SI Regime becomes mandatory from 1st September 2018.
“Now that we’ve moved to MiFID II business as usual, we have started to look at how we can make compliance a more integrated part of a trader’s workflow,” said Andy Mahoney, Head of Sales, FlexTrade UK Ltd. “With the first systematic internaliser assessments coming up later in the year, integration with SmartStream RDU’s SI Registry gives traders the transparency they need on a counterparty’s SI status before routing an order.”
“The SI Registry offers transparency that is needed as part of the trade workflow and integration into FlexTRADER EMS making it easy for our mutual customers to make more informed choices. With the mandatory SI regime commencing from the 1st September this year, we see more brokers offering SI services and growing demand from clients to understand who is offering what,” said Peter Moss, CEO of the SmartStream RDU.
“FlexTrade’s integration with the SmartStream RDU is fully cross-asset and embedded directly into the send order ticket as a flag to identify whether the selected counterparty is operating as an SI in the given instrument,” continued Mahoney. “Embedding regulatory compliance information into the EMS ensures the path to best execution is as efficient as possible.”
To find out more about the integration of the SmartStream RDU in FlexTRADER, or to request a demo, please contact [email protected].
About FlexTrade Systems, Inc.
Founded in 1996, FlexTrade Systems, Inc. is the industry pioneer in broker-neutral algorithmic trading platforms for equities, foreign exchange and listed derivatives. With offices in North America, Europe and Asia, FlexTrade has a worldwide client base spanning more than 200 buy-side and sell-side firms, including many of the largest hedge funds, asset managers, commodity trading advisors, investment banks and institutional brokers. For more information, visit FlexTrade Systems at www.flextrade.com
About SmartStream Reference Data Utility
The SmartStream Reference Data Utility (RDU) is a managed service that delivers complete, accurate and timely reference data for use in critical regulatory reporting, trade processing and risk management operations, dramatically simplifying and reducing unnecessary costs for financial institutions. The RDU acts as a processing agent for its participants selected data sources; sourcing, validating and cross-referencing data using market best practises so that these processes do not need to be duplicated in every financial institution. An experienced global team, who operate under the compliance frameworks of their customers, deliver data that is fit-for-purpose, consistent and in a format that is specific to the financial institutions’ needs. For more information, visit www.smartstreamrdu.com