New lay-out for MiFID II transaction reporting comes into effect

On September 23, 2019 a new version of the MiFID II guidelines has become the new standard. DEX Data Explorers has updated DEX Regulatory Suite with these new standards.

MiFID II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry, especially after the 2008 financial crisis.

MiFID II harmonizes the application of oversight among member nations and broadens the scope of the regulations. In particular, it imposes more reporting requirements and tests in order to increase transparency and reduce the use of dark pools (private financial exchanges that allow investors to trade without revealing their identities) and over-the-counter (OTC) trading.

traders

 

Transaction reporting

January 4, 2018 was the first day financial institutions all over Europe had to report their transactions to the regulator under the new MIFID ii regulation. Daily transaction reports have to be submitted to a local competetnt authority, in the Netherlands this is AFM. De guidelines for MiFID ii transaction reporting have been defined by ESMA.

DEX Data Explorers has included MiFID II Transaction reporting in DEX Regulatory Suite.

MIFID1

 

DEX Regulatory Suite for ESMA
In order to support the MiFID ii process DEX Data Explorers offers DEX Regulatory Suite for ESMA. DEX RS generates regulatory reports using the ESMA specifications.

 

MIFID2

 

DEX Regulatory Suite for ESMA generates the XML messages that are used in the MiFID II processes. These XML messages are based on the same ISO 20022 message standards that also are used for SFTR transaction reporting. When updates to the standards are submitted, you as a customer will receive an update on the set of reporting definitions.
DEX Regulatory Suite offers the following functionality for Reporting entities:

  • Reports generated according to the latest standards
  • Analysis tools for mapping of own data sets with the ESMA model
  • Validation of the data according to the validation rules defined by ESMA; this gives you the possibility of validating the reports before you send them in
  • XML generation in accordance with the standards of ESMA
  • Processing of the feedback of ESMA
  • Automatically generated documentation
  • Workflow support

Below an example of a MiFID ii report generated by DEX RS is shown.

 

MIFID3

 

Workflow support
DEX RS offers workflow integration. The DEX RS functionality has been integrated with workflow systems. Users are guided through the regulatory process; manual steps are integrated with automated steps. All actions are logged.

 

MIFID4

 

Design your own reports
On top of delivering the required regulatory reports DEX RS offers you the possibility of designing you own reports. This way you can reuse the data you use for regulatory reports for e.g. internal reports.

MIFID5

 

Available solutions
DEX Regulatory Suite supports the following regulations:

  • CRD iv (COREP, FINREP, Funding Plans, Asset Encumbrance, Supervisory Benchmarking Portfolio)
  • AnaCredit
  • Residential Real Estate
  • Deposit Guarantee Scheme
  • MIFID ii
  • SFTR
  • Social Economic Reports
  • Dutch Digital Reporting (DRA)
  • Solvency
  • IORP ii
  • Country Risk
  • Financial Assessment Scheme (FTK)
  • Premium pension institutions (PPI)
  • Tax reporting (VIA, Fatca)

 

Addition Knowledge House and DEX Regulatory Suite
Addition Knowledge House (www.addition.nu) is a reseller of DEX Regulatory Suite. Addition Knowledge House delivers the following services with regards to DEX Regulatory Suite:

  • Implementation supportAddition
  • Maintenance
  • Business process outsourcing

Each situation is unique. Addition Knowledge House will be happy to discuss how we can support your process in an optimal way.