FlexTrade is to integrate the SmartStream reference data utility (RDU) with its FlexTrader execution management system (EMS) to comply with the second Markets in Financial Instruments Directive (MiFID II).
The integration offers mutual clients the ability to embed SmartStream RDU’s systematic internaliser (SI) registry information directly into the send order ticket, providing clarity on counterparty SI status, prior to MiFID II milestone dates.
The SI registry is a collaboration between the SmartStream RDU, the approved publication arrangement community and their SI clients to provide a consolidated register of systematic internalisers mapped to instruments.
It will become increasingly important as the SI Regime becomes mandatory from 1 September 2018, said FlexTrade.
Andy Mahoney, head of sales at FlexTrade UK, said: “Now that we’ve moved to MiFID II business as usual, we have started to look at how we can make compliance a more integrated part of a trader’s workflow.”
He added: “With the first systematic internaliser assessments coming up later in the year, integration with SmartStream RDU’s SI Registry gives traders the transparency they need on a counterparty’s SI status before routing an order.”
“FlexTrade’s integration with the SmartStream RDU is fully cross-asset and embedded directly into the send order ticket as a flag to identify whether the selected counterparty is operating as an SI in the given instrument. Embedding regulatory compliance information into the EMS ensures the path to best execution is as efficient as possible.”
Peter Moss, CEO of the SmartStream RDU, commented: “The SI registry offers transparency that is needed as part of the trade workflow and integration into FlexTRADER EMS making it easy for our mutual customers to make more informed choices.”
He added: “With the mandatory SI regime commencing from the 1 September this year, we see more brokers offering SI services and growing demand from clients to understand who is offering what.”
