This case study is about an asset management firm that is active in the currency markets and has a proprietary trading platform.
Asset management firms today face increasingly more regulatory reporting requirements since MiFID II came into effect on January 2018. Firms are required to issue daily Transaction Reports and implement a process to monitor client execution quality.
Towards the end of 2017, the firm originally took on the task of MiFID II reporting directly to the FCA. This proved complex, time-consuming and a drain on resources, so they chose an Approved Reporting Mechanism (ARM) to report on their behalf instead. The firm was also being merged with a global asset manager and it was essential for them to be fully compliant beforehand.
They were therefore looking for a comprehensive reporting solution that would allow them to report transactions seamlessly under MiFID II. Given their poor experience with self-reporting and their unsuccessful use of an ARM, the firm was particularly selective about their future vendor. They were in search of a firm with a good reputation for reporting accurately; deep regulatory expertise; a fast onboarding process; and superior technology to support the integration of their system.
The Cappitech platform seamlessly connects with trade reports from trading platforms such as EMSs and OMSs, and also supports out of the box all ARMs and TRs formats to provide automated MiFID II compliance for those customers regulated by all main European NCAs such as the FCA, CySEC, CBOI and MFSA (among others).
Designed with a flexible architecture, Cappitech is a cloud-based Software as a Service platform that automates the reporting process for customers and provides instant insights based on trading data. The platform connects to customer trade records, enriches the data, allows for business logic to be applied where required, validates trades and reports directly to an ARM on the customer’s behalf.
Information is made available in real-time via an intuitive analytics dashboard and issues flagged to the customer at a glance. The platform also sends a daily email confirmation and alert of any non-compliance. As a result, clients are able to improve data-driven decision-making, better monitor for best execution – all while significantly reducing the cost of compliance.