Cappitech, a provider of regulatory reporting and intelligence technology, has partnered with fellow RegTech Trax to streamline their MiFID II transaction reporting.
Trax provides capital market data, trade matching and regulatory reporting services. The agreement will combine Cappitech’s regulatory reporting platform and Trax’s proven regulatory reporting heritage, to allow financial institutions to meet their MiFID II reporting requirements ‘seamlessly’, including daily transaction reporting.
Over 40 of Cappitech’s customers are already using the enhanced MiFID II transaction reporting that the integration offers including German insurance company, Provinzial NordWest; Swiss bank, Swissquote; and Irish broker, AvaTrade.
Ian Webb, head of compliance at AvaTrade, said: “Through Cappitech and Trax’s cooperation, we have been able to automate our MiFID II reporting to the Central Bank of Ireland. The solution also provides us with an easy to use portal to review reports and messages from the ARM and NCA.”
Trax integrates with Cappitech’s compliance technology to support the onboarding of non-standard, more complex customers. Using Cappitech’s CapptivateTM technology, different trading files can be combined and converted into a single Trax formatted file, providing a cost-effective yet tailor-made technology solution for Trax’s larger customers.
The partnership will also provide cross-regulation ARM reporting. Cappitech supports numerous European customers across more then 10 NCAs and uses Trax as its ARM of choice. Trax handles the NCA integrations when submitting trades, enabling Cappitech customers to report to multiple NCAs with ease.
Under MiFID II, financial services firms are required to report personal data as part of their transaction reporting. The Cappitech-Trax integration will also enable all personal data to be submitted to Trax’s European Data Store (EDS) with only the transactions reported through Cappitech to Trax.
The transactions and personal data are then matched securely, using an ID known only to the reporting entity, before being sent to the NCA. This segregation of data offers a best-in-class security model for sensitive data under the MiFID II transaction reporting regime according to the duo.
Last month, Cappitech integrated its trade reporting product with the CME Group’s trade repository in Australia. As a result, ASIC regulated investment firms can leverage the Cappitech’s source system integration, data transformation, data validation and submission analytics technology to comply with ASIC Derivative Reporting requirements.
Thomson Reuters also recently agreed to support Trax’s MiFID II regulatory reporting and Systematic Internaliser (SI) determination services. As part of the deal, Thomson Reuters will provide reference data for Trax’s trade and transaction reporting services via its APA and ARM.
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