NEX Optimisation Undergoes Network Upgrade for Harmony Ahead of MIFID II

The gradual push towards January 2018 continues and with it venues are working to shore up their services to be compliant with MiFID II. NEX Optimisation has announced its latest enhancement entailing its messaging services, which now has extended towards Traiana’s Harmony network.

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Traiana’s Harmony network helps deliver a wide range of global market connectivity, processing trades from both buy- and sell-side participants in the foreign exchange, equities, and exchange-traded derivatives space. Ahead of the January 3 implementation of MiFID II, NEX upgraded the network infrastructure to enable participants to exchange additional information.

Addressing regulatory obligations

The improved flow of information and consequent transparency of reporting many post-trade elements are areas of emphasis under MiFID II. The upgrade from NEX will also make the Harmony network fully compliant under the new regulatory regime.

More specifically, this will entail support for key data elements associated with transparency, including transaction reporting, venue Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, instrument and entity identifiers, timestamps, over-the-counter (OTC) post-trade indicators, and unbundling of research and execution fees.

NEX’s upgrade to the Harmony network the culmination of a lengthy consultation and recent review of the new regulations from a plethora of investment firms and industry working groups. Indeed, MiFID II has loomed large for most groups for over a year, with such initiatives and solutions being at a premium with less than six months until its passage.

Ahead of the game?

The upgrade also helps address any obligations for the Harmony network well ahead of any deadlines. Many other venues have not been as quick to reconcile their requisite compliance needs, prompting the UK’s Financial Conduct Authority (FCA) to urge firms to prepare for the new regulations without delay. In late June, a report showed that upwards of 90 percent of Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term firms were at risk of missing the MiFID II deadline.

Such developments are instrumental to Traiana’s Harmony network, given the need for multi-lateral trade clearing, transaction reporting, and other obligations necessitated by MiFID II. The latest enhancements to its network also are just one of many upgrades affecting its infrastructure, given a groundswell of regulatory obligations supporting USIs and UTIs for CFTC and EMIR regulatory reporting.

Steve French, Head of Connectivity and Messaging, NEX Optimisation, commented: "It's clear from the level of interest and participation from existing clients that the Harmony network is key to helping firms satisfy a number of their regulatory requirements. NEX Optimisation is at the forefront of providing services to support MiFID II compliance."

The latest upgrade caps off a busy two-month stretch for NEX, which has already addressed its FX solutions suite and capabilities. This included the rollout of a new automated settlement service for OTC FX and a credit rebalancer tool last month.