FlexTrade Systems, Inc. and SmartStream Reference Data Utility (RDU) has today announced the integration of SmartStream RDU with FlexTRADER Execution Management System (EMS). The integration will allow mutual clients the ability to embed SmartStream RDU’s Systematic Internaliser (SI) Registry information directly into the send order ticket. providing the much-needed clarity on counterparty SI status and is also prior to key 2018 MiFID II milestone dates.
Under the MiFID II regulations, SI Registry will fill the gap in the MiFID II reporting structure which requires that industry participants identify whether trading counterparties are SIs for the financial instrument that they are trading, so to ensure counterparties must report the trade. Under the MiFID II framework, no mechanism is provided to determine the SI status. This generally becomes a problem for asset managers and hedge funds who have not built the infrastructure needed to support reporting and rely on their SI counterparties for performing those functions.
The SI Registry is a collaboration between SmartStream RDU and their SI clients to provide a consolidated register of SI mapped to instruments. The integration is increasingly important as the SU Regime becomes mandatory from 1st September 2018 under the new MiFID II framework.
Andy Mahoney, Head of Sales at FlexTrade UK Ltd. said:
“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. 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 counterparty’s SI status before routing an order.”
“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. Embedding regulatory compliance information into the EMS ensures the path to best execution is as efficient as possible.”
Peter Moss, CEO of the SmartStream RDU commented:
“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.”