Phy-gital Roundtable: Breakfast Roundup from Germany and Netherlands

02 May '15 | Debjyoti Paul

German Shoppers: Meet Them in the Fast Lane to Phy-gital

15 January '15 | Ralf Reich

Shoppers Will Share Personal Information (But They Don’t Want to be “Friends”)

15 January '15 | Anil Venkat

Modernize or Perish: Property and Casualty Insurers and IT Solutions

14 January '15 | Manesh Rajendran

Benelux Reaches the Phy-gital Tipping Point: Omnichannel Readiness is Crucial

13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

Technology does not disrupt business – CIO day 2014 Roundup

02 December '14 | Anshuman Singh

Apple Pay – The Best Is Yet To Come

02 December '14 | Indy Sawhney

Digital transformation is a business transformation enabled by technology

01 December '14 | Amit Varma

3 Stages of FATCA Testing and Quality Assurance

06 October '14 | Raman Suprajarama

3 Reasons why Apple Pay could dominate the payments space

18 September '14 | Gaurav Johri

Beacon of Hope: Serving Growth and Customer Satisfaction

05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

What You Sold Us On – eCommerce Award Finalist Selections

17 July '14 | Anshuman Singh

3 Steps to Getting Started with Microsoft Azure Cloud Services

04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

Innovation outsourced – a myth or a mirage or a truth staring at us?

13 January '14 | Ramesh Hosahalli

What does a mobile user want?

03 January '14 | Gopikrishna Aravindan

MiFIR – New Reporting Challenges and Technology Solutions

Posted on: 23 July '15
Sajan Gopinathan
Senior Consultant, Capital Markets CoE, Mindtree Ltd.

The European Union released the Markets in Financial Instruments Directive (MiFID) in 2007 to govern financial markets as well as companies, funds, and banks. MiFID provides legal guidelines that cover all kinds of financial instruments and organizations.

Markets in Financial Instruments Regulation (MiFIR), the successor of MiFID, expands the scope of the instruments that need to be reported by financial institutions. To meet these new reporting requirements, organizations must enhance their source systems to capture essential information like short-sale flags, transaction executors, transaction decision makers, and underlying client data such as passport number, national identification number, and country of residence.

Typical buy-side firms will have many disparate systems in place, from order booking to back office activities. Because these systems are used for different asset classes, it’s important to identify the right system for sourcing the data required for MiFIR reporting. As a result, it becomes more complex to map product and client reference data from individual systems.

To streamline the MiFIR reporting process, organizations must develop logic systems to identify reportable transactions and filter out non-reportable transactions to avoid rejections. With multiple regulations in place, leveraging an existing data mart, like the European Markets Infrastructure Regulation (EMIR) data mart, is helpful for many organizations. As MiFIR reporting volume continues to grow, it is important to have a technology solution to increase reporting accuracy and manage any possible rejections and exceptions that may arise on a daily basis.

Real World Success Story

Mindtree understands MiFIR and its implications. Here’s a real world success story about how we recently helped a UK corporate and investment bank design an EMIR reporting system that seamlessly pulls data from multiple data sources.

Challenge: To comply with EMIR requirements, the UK corporate and investment bank needed to build an integrated platform that would pull trade data from more than 20 trading systems with a huge variety of trading and clearing scenarios and data models. Many of the older systems lacked EMIR data elements. In addition, a massive volume of historical trades had to be back-loaded into the trade repository.

Solution: Knowing that they could not build the platform on their own, the bank hired Mindtree to create an EMIR solution. Mindtree designed a data mart to aggregate required EMIR data from all source systems with data validation and reconciliation. The platform maps the data fields required for EMIR reports on trades, amendments, valuation, and collateral. Mindtree engineers also designed a flexible user interface that automates trade reporting and includes exception management capabilities to handle non-standard reporting information.

Results: The cost-effective EMIR reporting solution covers all five over-the-counter (OTC) derivative asset classes: interest rate, foreign exchange (FX), commodity, credit, and equity – as well as exchange-traded derivatives. Mindtree completed the project well within the EMIR reporting deadlines.

Interested in discussing how Mindtree can help streamline your organization’s MIFIR reporting requirements? Want to know more about the full range of Mindtree’s capital markets technology consulting? Email me at Sajan.Gopinathan@mindtree.com

Sajan Gopinathan

Sajan Gopinathan is a senior consultant at the capital markets center of excellence in Mindtree. He has more than 14 years of professional experience in IT industry with relevance to treasury and capital markets. He has delivered more than 20 implementations across front, mid and back office, and regulatory compliance.