In preparation for the upcoming MiFID II regulation,
B2BITS Products, the Capital Markets arm of EPAM Systems,
underwent a full review of compliance requirements in the following
areas:
Consumption and publishing of market data
Processing of drop copies of orders and trades and quotes
Reporting trades to APA (RTS 1 and 2) and transactions to ARMs
(RTS 22)
Routing orders
Sending quotes to trading places
Our software products are capable of being heavily
utilized in each of these areas, helping our clients meet the
regulations of MiFID II and beyond.
Trade and Transaction Reporting
The majority of APAs and ARMs have chosen to use the FIX
protocol to collect trading information. As a result, the FIX
Trading Community developed extension packs ( EP206 ,
EP216 ,
EP222 and EP228 Extension
Packs) to meet the requirements of MiFID II and MiFIR.
As a regular member of multiple FIX Trading
Community MiFID II subgroups, B2BITS followed up all the
changes in the FIX protocol, which are fully reflected
in FIXopaedia .
Furthermore, both the FIX
Antenna and FIXEdge line of
products leverage extension packs to enable client systems to
report quotes, orders and trades to APAs and ARMs, as well as
record receipts received from APAs and ARMs.
Here's how the Trade & Transaction Reporting framework
works:
To further support our clients who are grappling with
MiFID II compliance, we have passed or are in the process of
passing certification with multiple APAs and ARMs,
including:
Real-Time Reconciliation and Drop Copy Processing
Our clients leverage features of
products such as FIXEdge to quickly build trade data
warehouses to properly store trade events from drop copy feeds. The
rich interface of FIXEdge makes
it easy to integrate with internal systems via a
variety of middleware and databases, and the robust message
transformation capabilities of FIXEdge are becoming essential for
the uniform presentation of information collected from multiple
venues as well as the ability to comply with venue-specific data
formats when reporting.
To further augment the accessibility of our processing
capabilities, we have passed or are in the process of passing
certification with multiple drop copy and trade
capture venues, including:
ICE Trade Capture
ICE Private Order Feed Drop Copy
CME STP
CME iLink Drop Copy
Neovest Drop Copy
Trading Technology Drop Copy
JPM Drop Copy
CQJ Drop Copy
LME Select Drop Copy
Fidessa Drop Copy
Others
Timely, accurately captured information is required to
comply with a variety of RTSes, specifically RTS 22, to reconcile
internal system views with information received from execution
venues via drop copies. Here's how it works:
Time Recording Requirements
Major changes were made to support the FIX Extension
Pack 206 (EP206) , which is the Clock Synchronization
Datatype Enhancement.
MiFID required trade events to be recorded with timestamps
that are synchronized with Universal Coordinated Time (UTC) at a
high level of precision: within 100 microseconds, 1 millisecond, or
1 second depending on the trading type (RTS 25). Please review
release notes for support time tags with increased accuracy in
our products
knowledge base .
MiFID II Compliant Versions of Our Products
Other B2BITS products, such as Market
Data , Direct
Exchange Access , FIX Trade
Capture , FIX Drop
Copy , FIX
Reporting solutions, leverage features and abilities
of flagship products in terms of MiFID II
support. Please contact us today to learn
more!