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:

MiFID II Compliance. Trade and Transaction Reporting

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:

APA ARM
BXTR: Bats Europe Trade Reporting Services CREST
Nasdaq Nordic Approved Publication Arrangement TRAX
TRADEcho UNAVISTA
The Regulatory Reporting Hub (RRH) GETCO
Tradeweb TransacPort
Trax Transparency Solution Bloomberg TOMS

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:

MiFID II Compliance. Trade and Transaction Reporting framework

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

Product Version
FIX Antenna C++ Since  2.20.0
FIX Antenna .NET Since 2.20.1
FIX Antenna .NET Core Since 0.9.0
FIX Antenna Java Since 2.16.0
FIXEdge Since 6.2.0

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!