Gresham partners with Trax for MiFID II reconciliation service

Gresham, a London-based FinTech software company, has formed a strategic partnership with Trax to create a MiFID II reconciliation service.

Through the deal, Trax, the post-trade services and European market data division of MarketAxess, will leverage Gresham’s Clareti platform to power a 3-way reconciliation service for regulatory transaction reporting.

MiFID II, which was implemented in January, means that reconciliation is now mandatory to ensure complete and accurate transaction reporting. Regulatory Technical Standard (RTS) 22, Article 15, specifies that reconciliation between a firm’s transaction data versus trade data as published by National Competent Authorities (NCAs) is required by investment firms. The new ARM (Approved Reporting Mechanism) service also offers firms a greater assurance of their data integrity across trading systems and transaction reporting venues.

Ian Manocha, CEO, Gresham, comments, “Some ARM services are only able to deliver simple reporting processes, hamstrung by outdated software that limits the efficiency and sophistication of the service. We are delighted to be partnering with Trax, who can now bring absolute confidence to even their most complex clients by delivering the first simple, real time, 3-way data reconciliation of its kind.”

Whilst the regulatory reporting requirements for MiFID II have been implemented and transparency delivered, many firms are now seeking to drive greater efficiency and data quality across their operational controls.

Founded in 1968, Gresham is a software and services company that specialises in providing real-time transaction control and enterprise data integrity solutions. Its Clareti platform delivers absolute precision, evidencing holistic control between the trading systems, reporting systems and NCA’s according to the company.

Clareti Transaction Control (CTC) from Gresham acts as a central routing point for trade and transaction reporting. Distilling multiple sources of data, it automatically verifies and validates trade information in real time, ensuring consistency and delivering it in the correct format, to the relevant Trade Repository. With regulatory logic and rules pre-built into the platform, it can handle multiple requirements, automatically determining which body a trade needs to be reported to, based on key economic fields.

Chris Smith, head of Trax, said, “Gresham offers an innovative technology solution that helps us configure data controls efficiently. The speed of client integration has proven to be a valuable benefit throughout the on-boarding process, by offering varieties of file formats with the highest data volumes. With Gresham we can offer our clients a reconciliation solution that allows them to comply with confidence and have total control over their data integrity.”