Gissing Software, solution specialists in the routing and transformation of real-time market and trade data, today announced the development of two new output handlers – designed to enable trading organisations to handle the pre and post-trade transparency obligations of the Markets in Financial Instruments Directive (MiFID). The Gissing MiFID Post-Trade Output Handler and Gissing MiFID Pre-Trade Output Handler are being developed following the publication of the MiFID Level 2 Guidance in February, which stipulates that all organisations trading in designated liquid shares across the European Union (EU) and European Economic Area (EEA) must follow the same regulations with regard to market transparency.

MiFID will require all financial institutions to contribute post-trade data to one or more venues in as near to real-time as possible, and in any case within three minutes of the transaction. In addition, systematic internalisers – organisations that complete transactions internally rather than on the market – will be required to contribute pre-trade quotes to one or more venues in real-time. The objective is to maintain a standard of pre and post-trade transparency that ensures that adequate information is made public as to the level of orders or quotes for a particular share, as well as the level of trading in that share, and the executed prices for each share.

Using the new Gissing MiFID Pre-Trade and Post-Trade Output Handlers, Gissing ConteX clients will be able to automatically contribute both pre-trade and post-trade MiFID data to their choice of MiFID aggregation venues. As soon as they publish the relevant data onto their market data platform, or other suitable data source, it will be automatically routed to the appropriate destination(s) in real-time. If a particular venue or MiFID aggregator becomes unavailable, or can’t handle the volume of contributed data, the Gissing Output Handler can be configured to publish to an alternate venue, giving maximum resilience and reducing the risk of non-compliance. As well as routing all the relevant data required by MiFID to the appropriate destination(s), the Gissing Output Handlers can also process additional client-defined data about each transaction and publish that as appropriate.

The Output Handlers are designed with resilience in mind. The data is routed using the FAST (Fix Adapted for STreaming) high-speed data communications protocol and two lines to each destination are supported to ensure no break in connectivity. A fault-tolerant configuration with data synchronisation ensures that in the event of having to fail-over to the alternate venue, or in the event of hardware failure, current quotes are maintained and there is no duplication of messages. In addition, the Gissing MiFID Pre-Trade Output Handler includes both a manual and data-driven ‘suspend quote’ mechanism which can be invoked in exceptional market conditions.

The Gissing MiFID Post-Trade Output Handler will automatically record an audit trail of each trade report, as well as the timeliness of each message published, allowing firms to demonstrate that all prices were published inside the three minute time limit. The Pre-Trade Output Handler will provide similar audit trail facilities for pre-trade quotes. Links to industry-standard databases and archival and retrieval systems will allow financial organisations to store the data for the required time period: 12 months for pre-trade data, and five years for post-trade data.

Richard Gissing, CTO of Gissing Software said: “With the MiFID transparency guidelines now largely enshrined in an EU regulation – to be implemented consistently across all participating countries – there can be no excuse for financial institutions to delay their preparations. To ensure MiFID compliance by the current deadline of November 2007, and allow sufficient time for testing, firms will need to have implemented the appropriate data handling systems by early 2007. We are committed to providing our clients with the most effective means of connecting their back office systems and market data platforms to the appropriate MiFID aggregation venues. The Gissing MiFID Pre-Trade and Post-Trade Output Handlers offer the most effective and reliable mechanism for this task.”

As part of Gissing’s renowned ConteX Multi-contribution software solution, the Gissing MiFID Output Handlers will offer interfaces to a wide range of market data platforms and middleware messaging systems including Reuters RMDS, TIBCO Rendezvous, SSL and IBM MQ Series.

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