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GISSING SOFTWARE ANNOUNCES DATA FEED AGGREGATION GATEWAY HELPING FIRMS TO COMPLY WITH MiFID BEST EXECUTION REQUIREMENTS

London, 16 May 2006 – Gissing Software, solution specialists in the routing and transformation of real-time market and trade data, today announced the development of a Gissing Data Feed Aggregation Gateway – designed to help trading organisations to handle the best execution obligations of the Markets in Financial Instruments Directive (MiFID). The Gissing Data Feed Aggregation Gateway is designed to: aggregate feeds from multiple contributors; sort the data; select the top bid and offer prices; and publish this information to a firm’s market data system – all in real time.

One of MiFID’s stated objectives is to enforce across the EU a consistent system of ‘best execution’, meaning that clients of trading organisations can expect (and organisations must create and maintain an audit trail to prove) that they were provided with the best combination of price, service, timeliness and so on. In order to ensure compliance with the best execution provisions of MiFID, which will apply to all financial instruments from day one, trading organisations will need access, both in real-time and historical, to MiFID data from some, or all, other traders in the same instruments.

The Gissing Data Feed Aggregation Gateway is designed to handle all FAST Protocol feeds. With FAST emerging as the most likely standard protocol for MiFID data exchange due to its exceptionally low bandwidth requirements, this will allow the Aggregation Gateway to process feeds from multiple aggregators, for both pre and post-trade data. Support for additional data feed protocols will be added as required. After aggregating all the data, the Gissing Data Feed Aggregation Gateway will sort it, and then apply client-configured filters by instrument type, bid and offer prices and sizes, and the time interval of republication. Only the most relevant data will then be published to the firm’s market data platform. This avoids flooding the firm’s systems with unnecessary data which could otherwise cause bandwidth issues.

Based on Gissing Software’s tried-and-tested Electra product – which aggregates prices and volumes from multiple ECNs – the Gissing Data Feed Aggregation gateway will provide ultra-low latency feed handling, ensuring that all aggregated prices are accurate in real-time. It is also highly scaleable and offers multi-threading and multi-processor support for handling very high data volumes. All data can be automatically recorded in an appropriate data store.

Richard Gissing, CTO of Gissing Software said: “There has been much discussion about what the ‘best execution’ requirements of MiFID actually mean. But it’s certainly clear that trading organisations will have to be aware of all current quoted and executed prices for the instruments they’re trading, and that they will need to maintain an audit trail of this information. The Gissing Data Feed Aggregation Gateway will remove the burden of interacting with each individual data provider and sourcing the most relevant bid and offer data for real-time publication – enabling trading organisations to focus on their core business.”

The Gissing Data Feed Aggregation Gateway complements the Gissing Pre-Trade and Post-Trade Output Handlers announced last month – which are designed to help financial services organisations comply with the transparency guidelines of MiFID.