With the deadline for MiFID II just a few weeks away, Dublin-based Corvil has launched a new solution that establishes a system of traceability to Coordinated Universal Time (UTC).
The solution is used for monitoring, analysing and reliably reporting activity on electronic trading networks, a mandatory requirement for businesses to comply with pending financial regulations such as MiFID II and the Consolidated Audit Trail (CAT).
This provides business, technology, and compliance teams with ‘precise visibility, quantitative analysis, and insight into computer clock accuracy’ according to the company.
Its new offering enables businesses to rapidly respond to issues or outages by alerting when there is any loss or disruption of clock synchronization. It also identifies messages whose timestamp accuracy may be suspect, so customers have a record of the affected transactions for closer examination, auditability, risk mitigation, and regulatory reporting purposes.
Corvil claims this saves time and reduces the risk associated with MiFID II and CAT compliance.
With the speed and automation of today’s financial markets making it challenging to measure performance, determine causality and establish an accurate, sequenced forensic record of what has transpired, the consistency and integrity of time across computer systems is an increasingly important aspect of providing transparency into the business transactions executed across those systems.
“David Murray, chief marketing and business development officer, said: “Financial markets have moved first to regulate the precision by which time and events are captured within trading networks to help increase transparency and surveillance. Corvil’s UTC Traceability Solution provides an important capability for compliance with new regulations, but can be effectively applied beyond financial regulations by any company looking to monitor and assure critical business activity on their networks.”
The new Markets in Financial Instruments Directive (MiFID II), which is due to come into force on January 3rd, 2018, is designed to make European markets safer, more transparent, and more efficient.
However, the Association of German Banks recently criticised the reform, claiming that banks will have to cover the €1bn of costs needed to set up the technical infrastructure required.
The new regulation ‘undermines the trust’ between the customer and bank, and will create an ‘information overload’ for bank customers according to Michael Kemmer, general manger of the association.
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