1. Multi-Regime Trade and Transaction Reporting
MiFID II

2. Multi-Regime Trade and Transaction Reporting
Introduction:
Multi-Regime Trade and Transaction Reporting (MRTTR) system has been developed and is maintained by eurisco solutions ltd.
MRTTR was developed to address the multitude of Trade and Transaction reporting requirement from different regulators.
Not all directives require trade and transaction reporting. However, the ones that do, require a considerable amount of technical resources to perform gap analysis, data analysis, gap resolution, develop data feeds, test, capture responses, make changes as and when required, set-up event diary, etc. All of these tasks require additional budget, time and effort from the same resources.
MRTTR simplifies a number of these steps, making implementation easier and quicker. New regimes can be added without too much effort or involvement from technical resources.
MRTTR is a highly customisable and flexible system, and can be used to address trade and transaction reporting for MiFID I, MiFID II, EMIR, DFA, SFTR, and many others.
It supports a number reporting formats such as csv, fixed, xml, FpML and ISO 20022, and more will be added in future.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

3. Implementation Approach:
Identification of legal entities and data sources
Gap Analysis
Gap Resolution
Creation and population of cross-reference tables
Development of Database Views and User Defined Functions (UDF)
Mapping data to predefined rules
Definition of interface protocol parameters
Creation of scheduler or event tasks
Execution of scheduled tasks
Monitoring responses and logs
User Administration
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

4. Multi-Regime Trade and Transaction Reporting
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

5. 1. Identification of legal entities and data sources:
There can be multiple eligible legal entities satisfying the reporting requirement of a regulatory regime within an organisation, all of these entities need to be identified.
Trade, Transaction, Position and reference data sources related to the reporting requirement of the regime need to be identified.
Data may be sourced from multiple front , middle and back office systems. All data sources relevant to the reporting need to be used, should a central database not be present.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

6. Multi-Regime Trade and Transaction Reporting
2. Gap Analysis:
A detailed gap analysis between the data requirement of the regulatory regime as defined in the Directive and the internal systems needs to be carried out. Working with internal resources, eurisco solutions will carry out the gap analysis.
All gaps need to be categorised and documented. The gaps may occur:
within internal systems
3rd party applications or
within applications supported by service providers
The product owners of each application where gaps are located need to be identified.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

7. Multi-Regime Trade and Transaction Reporting
3. Gap Resolution:
A gap resolution committee needs to be set-up to discuss all the identified gaps and product owners responsible for providing solutions.
The gap resolution may require system changes and/or manual intervention. If manual intervention is necessary then it must be for a limited period only. However, it may not always be possible to avoid a manual intervention nor provide an automated solution. These will be discussed and agreed with committee members.
A gap may be resolved in many ways either
through additional data entry or
through direct data mapping or
through derivation or
a combination of data mapping and derivation or
by assigning a constant value
All gaps and resolutions need to be signed off by relevant business areas before a solution can be implemented.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

8. 4. Creation and population of cross-reference tables:
The field values defined in the internal or 3rd party systems may not be the same as that required by the regulatory regime. These values need to be converted to the required values through the use of cross-reference tables. eurisco solutions will build these tables with input from internal resources.
There may have to be multiple cross-reference tables defined per regulatory reporting regime. These tables are mainly reference data specific to the regime.
The cross-reference tables set-up usually will be a one-off exercise and carried out at the initial stages of implementation of a new regime.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

9. 5. Database Views and User Defined Functions (UDF):
Trade and Transaction data needs to be extracted from a central database.
A database View and possibly some UDFs specific to the regulatory reporting regime will be developed by eurisco solutions with guidance from internal technical resources.
These modules will update the tables internal to this application.
For real-time reporting, the View and UDFs will be executed automatically at regular intervals during the day by this application.
For batch reporting (T+1 or other frequency), these will be executed periodically at predefined schedules i.e. daily, weekly, monthly, quarterly, half-yearly, annually.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

10. 6. Mapping data to predefined rules:
The extracted reporting data will be mapped to the rules already defined within the application. Should any additional rules be needed then these will be developed, administered, and maintained by eurisco solutions.
The data mapping exercise will be carried out by eurisco solutions, user involvement is minimal other than the occasional consultations.
The mapping exercise is internal to this application and should only be carried out at the initial stages of implementation of a new regime.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

11. 7. Definition of interface protocol parameters:
We need to know the data feed requirement and interface protocols relevant to the chosen APA, ARM, SDR, GTR, etc.
eurisco solutions will liaise with the relevant data service providers (DSP) on behalf of the client to gather all such parameters.
These parameters are specific to a DSP. Should multiple DSPs be assigned for a regulatory reporting regime, multiple parameters will need to be set-up by eurisco solutions.
The information required to set-up an interface with a DSP involves:
data feed format
domain
user
access details
protocols
various message types and messages
intervals
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

12. 8. Creation of scheduler or event tasks :
Data extractor and reporting modules with parameters relevant to the regulatory regime need to be executed at specified intervals i.e. real-time, daily, weekly, monthly, quarterly, half-yearly, annually or other frequencies, respecting calendar or business day conventions.
A separate task needs to be defined for each data service provider (DSP) with their specific set of parameters.
eurisco solutions will set-up all such scheduler or event tasks to automatically execute the relevant data extractor and reporting modules at predefined intervals.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

13. 9. Execution of scheduled tasks:
The task master is the controller task as it controls other tasks. The task master will interrogate the scheduler for tasks that need to be executed on a particular date or time, and its dependencies.
Once a task is identified to be executed on a given date, it will be run on that date provided it meets the execution requirement. If there is a business day convention associated with the task schedule then it will be adhered to i.e. the task execution will be adjusted appropriately for holidays.
The task master may be executed from a user terminal or in batch mode. The ideal method of operation will be to have the task master run in the background in batch mode. Additional privileges may be required for scheduling batch jobs from a user terminal. eurisco solutions will work with internal technical resources to set-up such jobs.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

14. 10. Monitoring responses and logs:
Users can view the responses received from the data service provider (DSP). Each trade or transaction record details is shown on a GUI screen followed by the responses received.
If a correction needs to be made then the source data needs to be updated after which the erroneous trade or transaction should be resent.
An erroneous record may also be skipped if the user decides to resolve the issue directly with the DSP or the National Competent Authority (NCA).
A comment must be added to the record should the trade or transaction record be skipped or re-sent. This comment will not be sent to the DSP; it will stored internally and displayed each time the trade or transaction detail is viewed.
A statistics screen is also available so that the user can view a historical record count by date, and per status category in a graphical format.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

15. Multi-Regime Trade and Transaction Reporting
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting

16. Multi-Regime Trade and Transaction Reporting
11. User Administration:
All system users need to be registered in this system. They will be assigned an unique userid, and the users will need to define a unique username and password for themselves. All three fields are required for login to the system.
There is a password change screen and the system will remind the user to change his or her password at intervals.
All the screens except the user registration have a built-in timeout period. Once that is exhausted due to inactivity, the system will revert to the home screen and the user will need to login again to use the system.
There is also a screen available to list all the users in the system. Only a system administrator should have access to this screen. A user password and other personal details may be reset or updated using this GUI.
eurisco solutions ltd.
Multi-Regime Trade and Transaction Reporting