Flow Traders has deployed Corvil’s Intelligence Hub to streamline compliance with Order to Transaction Ratio (OTR) requirements.
Meeting MiFID II RTS-9 requirements to monitor and, where appropriate, limit the ratio of unexecuted orders I soften a costly burden for compliance teams. Market participants are traditionally dependent on end-of-day or similar reporting to assess their overall activity relative to OTR limits.
Flow Traders has selected Corvil to fortify its OTR compliance. The technology-enabled liquidity provider, which specialises in Exchange Traded Products (ETPs), said it chose to buy a solution rather than build this capability in-house to ensure ‘valuable resources remained focused on development efforts’ for its core trading business.
Corvil Intelligence enables Flow Traders to be more proactive in identifying, triaging, and actioning areas of potential risk. It also simplifies responses to regulatory queries by providing a complete forensic record of all order lifecycle messages.
“Ensuring ongoing compliance with applicable rules and regulations is sustained by being agile and focused on continuous improvement and implementing the latest technology to increase overall effectiveness,” said Thomas Wolff, CTO and member of the management board of Flow Traders.
“Corvil is helping Flow Traders to navigate OTR requirements with a simplified and consistent process for continuous oversight. Enhanced transparency into desk and trade strategy impacts and predicting conditions, assures us of a leaner, faster and optimised compliance function.”
Intelligence Hub complements Flow Traders’ existing deployment of Corvil Analytics. It leverages live trading order lifecycle data and applies machine learning to analyse firm wide, per-instrument and per desk OTR metrics, at scale. By continuously anticipating end-of-day ratios, it proactively identifies and alerts to compliance risks that require action.
With deployment complete for a number of venues already and more planned, Flow Traders said it I snow also beginning to look beyond OTR at other risk and compliance use cases Corvil Intelligence Hub can satisfy.
Allston Trading, an electronic trading and market-making firm, also recently picked Corvil to provide visibility, analytics, and reporting. The company has partnered with the RegTech to optimise its systems and infrastructure and to assure trading performance according to a statement.
In February, Dublin-based Corvil launched a new security analytics solution, to help identify malicious behavior. The solution helps organisations identify malicious behavior from compromised user accounts that increase the risk of data theft and reputational damage.
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