Flow Traders, a leading global technology-enabled liquidity provider specialized in Exchange Traded Products (ETPs), has gone live with Corvil’s Intelligence Hub to streamline compliance with Order to Transaction Ratio (OTR) requirements.
Corvil is an industry leader for deriving security, operational, and business intelligence from network data. MiFID II RTS-9 requirements have created an onerous, retrospective and costly burden for compliance teams who monitor and limit the ratio of unexecuted orders to transactions.
Flow Traders, like many other market participants, have selected Corvil to fortify its OTR compliance in order to enhance its information and processes to effectively manage regulatory risk before finding that they have exceeded thresholds. Corvil Intelligence Hub facilitates an entirely new business process that empowers Flow Traders to be more proactive in identifying, triaging, and actioning areas of potential risk. It also simplifies responses to regulatory queries by providing a complete forensic record of all order lifecycle messages.
Intelligence Hub leverages live trading order lifecycle data and applies machine learning to analyze firmwide, per-instrument and per desk OTR metrics, at scale. The software proactively identifies and alerts to compliance risks that require action and allows teams to explore, visualize and perform multi-dimensional analysis of data across venue, market, instrument, and desk to improve decision-making and track the impact of corrective actions.
Thomas Wolff, Chief Technology Officer and member of the management board of Flow Traders, commented:
“Ensuring ongoing compliance with applicable rules and regulations is sustained by being agile and focused on continuous improvement and implementing the latest technology to increase overall effectiveness. Corvil is helping Flow Traders to navigate OTR requirements with a simplified and consistent process for continuous oversight. Enhanced transparency into desk and trade strategy impacts and predicting conditions, assures us of a leaner, faster and optimized compliance function.”
David Murray, Chief Marketing and Business Development Officer at Corvil, said:
“Regulatory risk management and compliance carry increasing overhead, complexity, and costs for organizations. Corvil Intelligence Hub offers advanced analytics powered by machine learning to provide faster time to market and lower cost to customers in meeting these requirements. We are delighted to extend our partnership with Flow Traders and assist in delivering resilience to evolving compliance demands.”