Download Reuters services in response to MiFID

Reuters MiFID
Services
Reuters MiFID Services taking the complexity out of compliance…
Reuters is providing our customers with new services that will enable
them to meet many of their MiFID compliance obligations.
OTC Trade Publication
MiFID obliges all Investment Firms to publish the details of
any Over The Counter (OTC) trades, which are trades that
are not executed directly on an exchange or Multi-Lateral
Trading Facility (MTF), in a MiFID eligible stock. This has
to be done immediately and no later than three minutes
after the trade occurred. Where two parties are involved,
the obligation to publish falls on the seller unless the buyer
offers to do this on their behalf. However, MiFID allows a
choice as to where to publish these trades.
Reuters have launched a new service called Reuters Trade
Publication (RTP) that allows you to publish your OTC
trades in a straight forward and cost effective way via the
Reuters distribution and publication channel rather than
through an exchange, Multi-Lateral Trading Facility (MTF)
or other trade aggregator.
The service uses FIX as its message protocol and has both
an Application Interface (API) to which you can connect
your own Order Booking system or should you prefer, a
Graphical User Interface (GUI) that allows you to publish
the trades manually.
Reuters Trade Publication adheres to all transparency
requirements as defined under MiFID. In addition,
RTP complies with the Trade Data Monitor regime
being introduced by the UK regulator, the Financial
Services Authority.
Data fragmentation and consolidation
The implementation of MiFID in November will result in
OTC trade data being published by a greater number of
trading or reporting venues. In addition there is the potential
for meaningful pricing data to become fragmented over
the following 12 months as new execution venues such as
Chi-X, Equiduct and Project Turquoise become established.
In this fragmented data environment, the ability to view data
from all venues and to be able to see this in a standardised
consolidated display will become more important.
This fragmentation of data creates problems of its own,
new datafeeds, greater bandwidth within your information
distribution systems, new RICs to mention just a few. Reuters
will cover the new data from these venues in our desktops,
feeds and reference data products.
All published data will be distributed via a new Reuters
Instrument Code (RIC) that will follow the standard Reuters
coding structure but will be identified through a new RIC
extension known as the ‘.r’ RIC. This will include a full
‘Time and Sales’ log accessible through the standard
Reuters desktop capabilities.
In addition Reuters now offers a consolidated European
Best Bid & Offer (EBBO) view of the market through a single
‘.x’ RIC. Initially, the ‘.x’ RIC will display a consolidate top
of book for 1200 of the most liquid stocks with coverage
extended to all MiFID eligible stocks during 2008.
Sell Side:
- The Reuters Transaction Cost Analysis Service allows you
to show evidence of compliance with your execution policy
by reference to benchmarks calculated using the price and
trade data from the execution venues identified in that
execution policy.
- It also allows you to compare the execution quality
achieved by using specific venues against the whole
market to ensure the validity of the choice of venues.
Best Execution
MiFID requires firms to take reasonable steps to achieve
the best possible execution of client orders and also to
prove that they have done so. Firms must publish explicit
execution policies and demonstrate that they are adhering
to them.
Reuters offers a number of solutions that will assist
customers to validate compliance with their execution
policies, initially in Equities.
Reuters Transaction Cost Analysis Service (RTCAS) is a
Reuters hosted service that uses Reuters Datascope Tick
History (RDTH) data to calculate a series of benchmarks
relevant to a firms individual orders/executions. Reuters
has worked with the leading investment banks to establish
the benchmarks to be used in RTCAS that are destined to
become the industry standard in proving compliance.
This bureau service requires firms to provide Reuters with
files containing their order & execution data in real time or
on a daily, weekly or monthly basis. Customers will then be
able to run their own reports from our web based reporting
tool on demand and download these into spreadsheet
applications, as a PDF file and other formats.
The Reuters Transaction Cost Analysis Service (RTCAS)
allows both Sell Side and Buy Side to measure the quality of
order executions.
Buy Side:
- Assisting in the broker selection process: a TCA report can
show a comparison of implicit execution costs for different
brokers which can be an important criterion for selecting
a broker and evidencing compliance with their published
execution policy.
Although the initial focus for RTCAS is on Equities coverage
of other asset classes would be possible if comparative
trade and pricing data were to be made available.
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RTCAS provides:
Summary Cost analysis & Segmentation Analysis with drill
down to carry out analysis.
- Trader Performance
- Volume Consumption
- Fill Analysis
- Individual trades and orders
- Downloads in CSV format for use by other applications
- Graphical representation of execution performs.
Reuters DataScope Tick History (RDTH) provides
underlying market data on a hosted basis for proving best
execution. The service captures tick by tick trades/quotes
with millisecond time stamps across all fields for MiFID
impacted EMEA exchanges. As it is extremely costly to
store the increasing volume of market data for this
regulatory requirement, this service looks to provide firms
with a central repository for data access. RDTH has stored
market data for over ten years and will continue to maintain
this database history. Firms will be able to compare the
executed trade against the market for a period of time
across their pre-chosen best execution venues and be able
to demonstrate compliance.
Larger firms who want complete ownership over their data
may prefer to use Reuters Tick Capture Engine (RTCE),
a deployed solution that can collect every single tick of
real time data flowing through their systems. RTCE enables
clients to produce periodic or real-time custom analysis
of transaction costs, so they can validate their own
execution quality without the data being passed outside
their own systems.
For more information
To contact Reuters about MiFID email
mifi[email protected]
Read more about MiFID at
www.reuters.com/mifid
Send us a sales enquiry at
www.reuters.com/salesenquiry
Find out how to contact your local office
www.reuters.com/contacts
Access customer services at
www.reuters.com/customers
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