New Client Facing Roadmap

New Client Facing Roadmap
October, 2015

Transcript

1. UnaVista 2015/2016 Product Roadmap 27 November 2015 London Stock Exchange Group Page 1
2. Alignment with LSEG Value Chain London Stock Exchange Group Page 2 Primary Trading Middle & Back Office Clearing Settlement & Depository Information Technology
3. UnaVista Business Solutions Risk and Controls Regulation Data & Analytics Operational and Regulatory Risk Management Solution
4. Page 4 Risk & Controls  Central Solutions  Approved EMIR trade repository (all asset classes)  Approved Reporting Mechanism (ARM) MiFID  G20 transaction reporting _ global repository and routing  Regulatory Solutions -e.g.  AIFMD  Short Selling  Financial Transaction Tax  Primary dealer (HRF)  EU Transparency directive  Mergers & Acquisitions (POTAM / Rule8)  Section 793 UK companies  Rules Engine Reconciliations  Cash & Stock  Front Office/Back Office  Broker (CFD trade)  Client Money  NAV  Intersystem / InterCompany  Transaction reporting  MiFID eligibility checking  Forward FX  Commission sharing  Back Testing (BASEL II)  ETD  Exchange (Gross & Net) Swaps Processing  Tri Party Matching  Buy side  Executing Broker  Swap writer / prime broker Confirmations  Broker Matching  Broker/buy-side  Low automation  SWIFT GETC  Full lifecycle matching & routing supported  Omgeo integration  OGD & CTM  Bilateral netting  FIX connectivity & local matching CCP Connectivity Data  SEDOL Masterfile  Corporate actions  Participant trade data  LSEG historic Reference data  EMIR data feed  MiFID eligible stocks  MiFID historical data (for back reporting)  Tick & Enhanced best price data  LEI Data Feed  CAI Data Feed  EMIR public aggregation data Analytics  Reporting KPIs  Management Information  User Defined Thresholds  Peer to Peer  MAR Surveillance Operational and Regulatory Risk Management Solution UnaVista Business Solutions UnaVista Platform Solutions Operational and Regulatory Risk Management Solution Regulation Risk and Controls Data & Analytics
5. Risk Management Evolution Bespoke Build/Buy Regional Solutions Global Repositories Strategic Frameworks • Tactical local solutions • Operational silos • Geographically dispersed • Single regulation, regional solutions • Streamlined operations • Regional control frameworks • Global • Multi regulation • Business insight • Risk mitigation GTR UnaVista UnaVista On Big Data Business Value Tactical Regional Centralization Optimization Reporting Platforms 5
6. 2015/2016 Focus 27 November 2015 London Stock Exchange Group Page 6 MiFIR Client Onboarding Q3 2016 Change to RTS Q1 2016 Lead MiFID to MiFIR Transition Business Intelligence: Peer to Peer, MAD Surveillance Regulatory Reconciliations: EMIR, REMIT, MiFIR utilities Reference Data: Eligibility, LEI, SEDOL, Client Static Bulk LEI Allocation Oct 2015 MiFIR Accelerator Aug 2015 MiFIR UAT Ready Q1 2016
7. MiFIR Product Roadmap Jan Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2015 Rules Engine: G20 Derivatives Reporting, REMIT, DTCC Connectivity Regulatory Reconciliations: MiFID, EMIR, REMIT, Canada, Dodd Frank, G20 Central Solutions EMIR L2 MiFIR Regulatory Suite MiFIR / APA Production Reference Data: MiFIR, LEI, EMIR, SEDOL, Static Data 2105-2017 MiFIR Regulatory Package: MiFIR, EMIR, G20, SFT, CPR, APA and BI/Transaction Surveillance for all. EMIR V2 Commodities Reporting / SFT Static & Reference Data, MI, Peer To Peer, LEI Monitor MiFIR Accelerator MiFIR UAT APA/ Rules Engine Test tool ready UAT ready Production ready EU Short Selling, Transparency, M&A FinFrag Reporting 27 November 2015 London Stock Exchange Group Page 7
8. 27 November 2015 London Stock Exchange Group Page 8 Regulatory Products
9. MiFIR Product Roadmap Jan Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2015 Rules Engine: DTCC, REMIT, G20 Derivatives Reporting Regulatory Reconciliations: MiFID, EMIR, REMIT, Canada, Dodd Frank, G20 Central Solutions EMIR L2 MiFIR Regulatory Suite MiFIR / APA Production Reference Data: MiFIR, LEI, EMIR, SEDOL, Static Data 2105-2017 MiFIR Regulatory Package: MiFIR, EMIR, G20, SFT, CPR, APA and BI/Transaction Surveillance for all. EMIR V2 Commodities Reporting / SFT BI: MAD Transaction Surveillance, MI, Peer To Peer MiFIR Accelerator MiFIR / Boat APA Prototype MiFIR Rules Engine Test tool ready UAT ready Production ready EU Short Selling, Transparency, M&A FinFrag Reporting Page 9
10. UV MiFIR Solution Suite UnaVista Rules Engine TR, ARM, EU SS, TD, M&A Bespoke Business Rules Data Transformation & Normalization Data Augmentation & Validation Repositories Reference / Static Data Regulators Onboarding & Connectivity MiFIR Accelerator Business Intelligence Regulatory Reconciliations Boat APA Trade Reporting Regulatory Reporting Flow UnaVista Suite UnaVista Additional Services MiFIR Solution is part of a comprehensive Regulatory Solutions Suite Page 10 DTCC Connection
11. MiFIR – Future State 27 November 2015 London Stock Exchange Group Page 11 FCA Gateway FCA Zen (SMARTS) ESMA TREM AMF Gateway BAFIN Gateway CONSOB Gateway LSE ICE MTF ARM 2 ARM 3 Firm 5 Firm 4 UnaVista ARM Firm 3 DTCC Reference Data Static Data Files/API Firm 2 Firm 1 Third Party Products Reference Global LEI Eligibility Check SEDOL Trader ID Beneficiary ID Counterparty ID etc… Home Authority (LEI) Host Authority (Branch) Relevant Authority (ISIN) ISO 20022 ISO 20022
12. UV MiFIR Solution Components Module Description Reference Data Access to and maintenance of complete and accurate personal, product and reference data. Business Intelligence Proactive monitoring of reporting quality, management information, peer to peer benchmarks and user defined thresholds. Regulatory Reconciliations MiFIR, EMIR and other regulatory reconciliations. MAD Transaction Surveillance Monitoring of transaction flow to identify insider trading and market manipulation suspicious trades. UnaVista Repositories Registered and regulated TR and ARM services. UnaVista Accelerator Online onboarding and data quality testing tool. UnaVista Rules Engine Hosted business logic and ETL tool allowing for: • Data augmentation using static, reference or external data sources • Data transformation to and from various reporting formats and standards • Bespoke business logic and workflow applied to the data DTCC Connector Ability to use augmented DTCC reports to fulfil MiIFR transaction reporting requirements through a single DTCC message stream. Page 12
13. DTCC MiFIR Connector Option 27 November 2015 London Stock Exchange Group Page 13 Notes: • Existing DTCC message templates will be extended to include additional MiFIR fields • Participants can send single message using existing channels • DTCC will split the message and provide a connection service to UnaVista ARM • DTCC new MiFID Infrastructure will supply DTCC ID to LEI mapping, OCODE assignment and Message ID • UnaVIsta ACK/NACks available through DTCC in submission format(FpML or CSV) • NCAs ACK/NACKs and Submission Reports available either through UnaVIsta and/or DTCC* * NCA format yet to be defined MiFIR reports flow DTCC Splitter Existing DTCC GTR Infrastructure Reporting Firm New DTCC MiFID Infrastructure Existing submission, transaction, position tables UnaVista MiFIR ARM ESMA NCA2 NCA3 NCA4 EMIR Reports UV ACK/ NACK & Daily Summaries Encrypted Transactions Permission checks, daily reconciliation Private Data / Clarient EMIR Submissions MiFIR Submissions Validation, TRANSALTION, Augmentation Receipt Acknowledgement ACK/NACK Response ESMA Position Reports Participant Reports (via SSO)
14. Planned NCA Connections 27/11/2015 Competent Authority Connections: Page 14 Priority 1 (Q1 2016) Priority 2 (Q2 2016) Priority 3 (Client Request) Republic of Cyprus Norway Bulgaria France Belgium Croatia Germany Denmark Czech Republic Ireland Finland Estonia Italy Greece Hungary Luxembourg Portugal Latvia Netherlands Spain Lithuania Sweden Malta UK Poland Gibraltar Romania Austria Slovakia Slovenia Iceland Liechtenstein
15. Gap Analysis Client Engagement Timeline Page 15 New Jul 2015 Jan 2016 Jul 2016 Jan 2017 Existing Standard MiFIR Accelerator UAT Onboarding Production Onboarding Draft RTS ESMA Scenarios Final Policy Statement Regulators UnaVista Events RTS CAG Scenarios CAG Go Live CAG UAT CAG New Existing Rules Engine UAT Testing MiFIR Accelerator UAT Migration Production Migration UAT Testing MiFIR Accelerator UAT Configuration Production Onboarding UAT Testing MiFIR Accelerator UAT Configuration Production Onboarding UAT Testing MiFIR Accelerator V1 V2 V3
16. MiFIR Accelerator Program Available July 2015 • Dedicated MiFIR Accelerator Test Tool • Q1 2016 Access to MiFIR UAT System • First Choice of UAT Testing and Onboarding Timelines • Bespoke Onboarding and Migration Plan • Early Access to Field Specification & Readiness Checklist • LEI Readiness Check • Bulk LEI Allocation Service • Expert Support • Training • Programme Credit Page 16
17. LSEG MiFID II Reporting Services 27 November 2015 London Stock Exchange Group Page 17 Client / Partner Boat UnaVista Trade reporting APA (near real-time) Transaction Reporting ARM (T+1) NCAs
18. Two New Regulation Products Page 18 EU Short-Selling: • Covers Equity and Sovereign Debt positions in EU • Automated, jurisdiction specific, short position threshold monitoring • Formatted private and public disclosures to relevant Competent Authorities EU+ Transparency Directive: • Covers EU plus 9 adjacent economies (Switzerland, Russia, Turkey, etc..) • Automated monitoring of equity based long positions • 4-eye disclosure workflow and ability to suppress jurisdiction- country combinations
19. UnaVista Regulatory Reporting Page 19 • Technology platform to support global reporting needs • Single, strategic reporting platform: • Only TR proving EMIR TR and MiFID ARM services • G20 reporting for multiple jurisdictions • FTT, AIFMD, Short Selling, Transparency Directive, M&A and others • Provision of all reference data: ISIN, SEDOL, LEI, eligibility, etc.. • Only future provider or EMIR, MiFIR and APA services from one vendor
20. Jan HKMA -> 2015 G20 Reporting Roadmap Page 20 Jan 2015 Feb Mar Apr May Jun Jul Aug MAS DTCC Core, Singapore TR HKMA, HKTR ASIC DTCC Core,, Singapore TR MAS FX ASIC 3A MAS 1A IR+CR G20 GUI All IR (NBA) All FX (NBA) Full/part termination Withdrawal, Quit, Re-link, Supress, Uncertain Equity Equity Other Sep Oct Nov 3A – Interest and Credit 3B – FX, Equities and Commodities (changed to single sided for 3B entities under 5B, where other side reports) IR CR MAS + ASIC HKMA G20 v2 ASIC 3B UV Releases Delivery Timeline Likely delayed till Q3 2016 FX FX Valuations
21. Jan Use V2.2 or V3 depending on timing Production Production 2014/2015 AIFMD Roadmap Page 21 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Reporting Go Live Product Delivery Jan. Reporting Clients 2, 3, 4 and others Post Jan. Future Clients Jan. Reporting Client 1 Charter Client UAT & Feedback V 1.0 Production V 2.0 V 2.1 V 3.0 to be scheduled UAT UAT Solution Build and Refine V 2.2
22. EMIR Level 2 Validations London Stock Exchange Group • Currently in UAT • Reporting start date is late October 2015 Page 22
23. MI and Peer to Peer Analysis • MI Reporting KPIs • Submission Status • Transaction Reports Received – By Source • Transactions Per Hour Summary • Report Status Split • ARM Validation Exceptions • Exception Trends • Late Submissions • Transaction by Venue • Top 10 Counterparties and Clients • Peer to Peer Comparisons • Exceptions, Rejections and Late Reports • ARM Exceptions Comparison • Regulator Rejections Comparison • Instrument Type Trading Capacity Breakdown Over Reporting Comparison • User Defined Thresholds • Late reporting % • Daily rejection % • Buy/sell indicator ratio • BIC/LEI vs Internal Code ratio • Principal vs. Agent ratio • Daily cancellation ratio Page 23
24. UnaVista’s MAR Transaction Surveillance Data Analysed If you already report to UnaVista as a MiFID Approved Reporting Mechanism, UnaVista will leverage the data already provided to seek and detect potential instances of suspicious transactions. Types of suspicious transactions detectable by UnaVista: Insider Trading (part of MAR 1.3): • Based on price movement and trade profitability thresholds • Weighted by asset class and duration open Market Manipulation (part of MAR 1.6): • Front Running - Based on Agent vs. Proprietary trade indicator • Restricted List Analysis – Based on supplied list • Parked Trades Analysis - By monitoring trading books • Wash Trade Analysis - Based on trades of similar price • Cancellation Analysis - Based on trade cancellation All of which are major forms of market abuse prosecutable under both MAD and MAR. UnaVista does not monitor for non-quantitative forms of market abuse such as spreading misleading information, or non-compliance with research disclosure and managerial disclosure requirements. Page 24
25. 27 November 2015 London Stock Exchange Group Page 25 Reconciliations Products
26. 2015/2016 Reconciliations Roadmap 27 November 2015 London Stock Exchange Group Page 26 Utility: • Multi tenant reconciliation utility operated by Wipro Regulatory (MiFID, EMIR, Dodd Frank, G20): • Various client trade systems • Client’s reporting system (UV Rules Engine or other) • TR (UV or others) Trade Lifecycle: • Two or more trade lifecycle systems Jan Q1 2017 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Wipro POC Support Wipro Projects Trade Lifecycle Wipro Solution Tailored Reconciliations Central Solutions Reconciliations Utility (Wipro) , Trade Lifecycle, Regulatory New Configurations: Cash and Stock, CCP/MTF trade matching, T2S, etc.. MiFID / EMIR / Dodd Frank / G20 Reconciliations Central Solutions standardization: • Uses TR/ARM data templates • Standard reconciliation field list and matching rules • Streamlined exception management workflow