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EXTENT-2017: MiFID II and Impacts on Trading Workflow

EXTENT-2017: MiFID II and Impacts on Trading Workflow

EXTENT-2017: Software Testing & Trading Technology Trends Conference
29 June, 2017, 10 Paternoster Square, London

MiFID II and Impacts on Trading Workflow
Ferdinando La Posta, Co-founder & CEO, GATElab

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June 30, 2017
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  1. MiFID II and impacts
    on trading workflow
    EXTENT June 2017 V1.0
    Page 1

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  2. Page 2
    Price
    Discovery and
    Best Execution
    Trade Costs
    and Liquidity
    Analysis
    Benchmarking
    & Analytics
    Pre-Trade
    Transparency
    Execution
    Post-Trade
    Transparency
    New paradigm in trading flow
    RM &
    MTF
    OTF
    OTC
    execution
    SI
    if you have
    • a good trading desk with quantitative,
    qualitative and holistic capabilities,
    • a powerful best execution process,
    • an unbundled research-execution cost,
    • a good feedback from performance control,
    • a good centralized regulatory hub,
    nothing has to be done
    for MiFID II

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  3. Page 3
    Price
    Discovery and
    Best Execution
    Trade Costs
    and Liquidity
    Analysis
    Benchmarking
    & Analytics
    Pre-Trade
    Transparency
    Execution
    Post-Trade
    Transparency
    Capture, Discover & Analyze
    What you need to capture:
    • huge amount of data, coming from different
    types of external or internal sources (i.e.
    feedbacks from previous steps);
    To do what:
    • to support the discovery process of the best price
    per each instrument;
    • to analyze discovered liquidity and hence to
    understand the cost of a trade;
    • to feed relevant information to the next steps
    With which challenges:
    • handling good real-time & snapshot structured
    & unstructured data;
    • putting in place good strategies & analytics to
    evaluate.
    RM &
    MTF
    OTF
    OTC
    execution
    SI

    View full-size slide

  4. Page 4
    Price
    Discovery and
    Best Execution
    Trade Costs
    and Liquidity
    Analysis
    Benchmarking
    & Analytics
    Pre-Trade
    Transparency
    Execution
    Post-Trade
    Transparency
    Validation & Pre-Trade
    What you need to capture:
    • huge amount of data, coming from different
    types of external or internal sources (i.e.
    feedbacks from previous steps);
    To do what:
    • to validate discovered/defined prices and liquidity
    against related benchmarks and assess their
    impact on internal risk;
    • to spread defined and verified prices
    • to feed relevant information to the next steps
    With which challenges:
    • handling good real-time & snapshot structured
    & unstructured data
    • putting in place good strategies & analytics to
    evaluate
    RM &
    MTF
    OTF
    OTC
    execution
    SI

    View full-size slide

  5. Page 5
    Price
    Discovery and
    Best Execution
    Trade Costs
    and Liquidity
    Analysis
    Benchmarking
    & Analytics
    Pre-Trade
    Transparency
    Execution
    Post-Trade
    Transparency
    Execution & Post-Trade
    What you need to capture:
    • internal sources (i.e. feedbacks from previous
    steps);
    To do what:
    • to execute trades and evaluate their impact;
    • to spread trades to APAs, ARMs and CTPs;
    • to feed relevant information to the next steps
    • to reconstruct trades & capture sales workflow
    With which challenges:
    • handling good real-time & snapshot structured
    & unstructured data
    • putting in place good strategies & analytics to
    evaluate
    RM &
    MTF
    OTF
    OTC
    execution
    SI

    View full-size slide

  6. Price
    Discovery and
    Best
    Execution
    Trade Costs
    and Liquidity
    Analysis
    Benchmarking
    & Analytics
    Pre-Trade
    Transparency
    Execution
    Post-Trade
    Transparency
    Winning points to tame MiFID II
    Data Management Platform for
    • handling structured and unstructured data
    • easy configurable rules for quality and enrichment
    • handling not only MD, but also voice as a text, mail, unstructured text,
    news with AI support (sentiment analysis)
    • easy programmatic and enriched UX (with chatbots) interfaces
    Strategy and Analytics for
    • liquidity discovery and analysis, pricing with Adjoint Algorithmic
    Differentiation and AI support (machine learning and deep learning)
    • transaction cost analysis and benchmarking
    • risk, margin and portfolio optimization
    Page 6
    RM &
    MTF
    OTF
    OTC
    execution
    SI

    View full-size slide

  7. Client
    Realtime
    Data Lake
    Data Quality and Aggregation
    On Demand
    Trade
    Reconstruction
    Email
    Voice
    Documents
    Pre Trade
    Markets
    Trading
    Platforms
    Execution
    Post-Trade
    Clearing &
    Reporting
    Clients
    Client
    Reporting
    Surveillance &
    Alerting
    TCA Analysis
    Transaction
    Reporting
    Post-Trade
    Transparency
    ARMs
    APAs
    Snapshot
    Sales
    Traders
    Validation &
    Enrichment
    Data Sourcing
    Aggregation and
    Storage
    Calculation and
    Data Services
    Monitoring and
    Oversight
    Client & Front
    Office Access
    Reporting &
    Submission
    Internal
    Analytics
    GATElab for MiFID II platform
    Customer/Third
    Party Analytics
    Page 7

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  8. Regulatory Hub
    Centralize data from different data sources for different asset classes to implement a
    MIFID II-compliant data lake. Avoid costs for adapting to multiple trading systems
    Capture and combine different types of events in different forms: from structured electronic
    messaging (e.g. FIX Protocols) to Email, Documents and Voice trading systems
    Monitor all trading flow executions – historical or intraday - in conjunction with real-time market
    data. Open access to Front Office, Sales, Clients and Compliance users
    View all of the quote, order & trade flows in real-time for all of your connected platforms, bridge
    the gap among your trading platforms.
    Single Straight Through Processing channel from front office trading platform and execution
    venues to post-trade platforms (Transaction Reporting, Post-Trade Transparency, …)
    Insert and keep track of Voice Orders in compliance with MIFID II focusing on
    derivatives/structured business
    Voice Workflow
    Unstructured Data
    Compliance
    Monitoring
    Trading Performance
    Trading performance analytics shows the quality of execution performance relating to a variety
    of benchmarks (e.g. Arrival Price).
    Real-Time
    Global View
    STP Feed
    Page 8
    GATElab for MiFID II platform: key points

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  9. Trading+Algo
    Platform
    SOR
    Platform
    Listed Instruments
    OTC
    Platform
    Cleared Trades
    Bank Systems
    Broker Trades
    Email Voice Documents
    Trade Events
    Compliance
    TCA Analysis
    Trade
    Reconstruction
    Client
    Compliance
    Client
    Regulators
    Transaction
    Reporting
    Trade
    Reconstruction
    Reports
    Client
    Clients
    Client
    FO
    Admin
    Configure
    Surveillance
    Surveillance
    Compliance
    Post-Trade
    Transparency
    Clients
    Sales
    Voice
    Recorder
    ARMs
    APAs
    Page 9
    How GATElab can help
    GATElab
    Market Data Management
    & Analytic Platform

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  10. Many thanks!
    GATElab
    10 Paternoster
    Square,
    EC4M 7LS
    London (UK)
    [email protected]

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