SmartStream’s Reference Data Utility (RDU) and SmartStream Air have been combined to create Transaction Reporting Reconciliation and Reporting Decision Control, a solution to provide disclosure capabilities for compliance with the second Markets in Financial Instruments Directive (MiFID II).
The artificial intelligence-enabled technology, combined with specialist reference data in the cloud, will help firms meet the reporting obligations of the directive.
The product will help financial firms demonstrate the accuracy of their transaction reporting processes to regulators, says SmartStream.
Using the newly combined product, firms will be able to show the integrity of their data, but without the effort and overheads associated with several reconciliation systems.
SmartStream Air handles large volumes of data in the cloud, reconciling all fields firms may need to enter for MiFID II transaction reporting purposes — offering near real-time matching.
SmartStream Air is complemented by SmartStream RDU’s application programming interface that will allow firms to validate whether a financial instrument is traded on a trading venue, and therefore reportable.
SmartStream RDU offers data from regulatory and industry bodies, assisting firms with their trade and transaction reporting, avoiding either under or over-reporting.
In addition, the solution will also provide market participants with the necessary data to support a decision to file a report, should that decision be questioned by regulators.
Jethro MacDonald, product manager of the innovations lab at SmartStream, says: “Complying with the demands of MiFID II transaction reporting is complex, also proving data integrity to regulators can place a real strain on firms. This new solution will add an invaluable control for investment firms, allowing them to spot both data, and reporting decision irregularities in one control framework — showcasing to regulators that they have taken all the necessary steps to ensure their transaction reporting is both complete and accurate.”
