Transaction Reporting Framework - MiFID
In response to the Markets in Financial Instruments Directive II (MiFID II) legislation drafted by the European Commission in October 2011, global financial majors must deliver periodic reviews/reports on business operations and process adherence. Complex securities transactions management and siloed internal operations with disparate protocols present further challenges. Institutions are now rapidly altering their operating models and financial transaction services in-sync with MiFID II regulations.
Companies must define a business process management framework that ensures stringent adherence to evolving industry norms. Hence, a combination of agile upgrades is required for existing applications with new, innovative offerings.
HCL’s SOA-based enterprise architecture is geared to work solutions in conformity with MiFID II. The layered framework identifies areas of concern, offering flexibility for new service plug-ins or existing-structure upgrades. IT infrastructure investments are safeguarded while the transitioning services are orchestrated into composite applications through an Enterprise Service Bus (ESB). The key features include:
- Filtering mechanism for sanitizing trade data from various sources
- Transparency in business rules application, identifying relevant trades for transaction reporting
- Unified gateway connecting to reporting tools or direct regulatory MiFID transaction reporting
- Standard messaging formats for external notifications
- Best-of-breed rules engine and servers with secondary standby capacity
- Scalability to handle volume spikes and database segmentation
- Single dashboard for monitoring business process performance
- Shareable applications
HCL is focused on simplifying the MiFID II reporting architecture. The modular approach to MiFID transaction reporting incorporates multiple instruments and reporting mechanisms while handling several transaction types.