Microsoft Corp and its partners today announced the launch of a new package of Markets in Financial Instruments Directive (MiFID) solutions for what it sees as the main challenges of MiFID: planning and testing; client classification; best execution; reporting; market connectivity; reference data and trade history; systematic internalisation; and systems integration. The eight technology solutions, which can be offered as a complete package or as individual components can be implemented according to a financial institutionâs individual compliance needs.
With the deadline only ten months away, a considerable number of financial institutions are still looking at ways to upgrade their IT systems to ensure they comply with these new requirements. âBy working extremely closely with our partners we have developed an offering that serves all financial institutions needs to comply with the EU directive,â said Ian Warford, industry director for securities and capital markets at Microsoft EMEA, Financial Services. âAnd because Microsoft technology is familiar to people working in financial institutions and easy to integrate with existing IT systems, the total budget required to implement a solution that ensures full compliance with MiFID is very cost-effective.â
The following solutions have been developed, and will be offered, by Microsoft in collaboration with some of its leading financial services partners, including Aleri Labs, BearingPoint, C.O.S., Debug Software Tailoring, Fintecs, Gissing Software, HCL, HP, Progress Apama, Qumas, Rapid Addition, Singularity, SunGard, SuperDerivatives, TAP Solutions and Xenomorph:
Â· Planning and testing. This solution is divided into three parts: impact analysis, MiFID documentation, and exchange simulator and provides a complete analysis of the impact MiFID will have on an organisation. It assists in project planning and implementation of the directive; helps automate the process of compliance and mapping its progress; and enables financial firms to simulate market data feeds, venue connections and trade flow.
Â· Client classification. This provides complete modelling, implementation and document storage of the entire client classification process for regulatory purposes.
Â· Best execution. The best execution solution includes pre-trade and post-trade analytics. It enables banks and brokers to electronically evaluate the cost of doing a trade on various exchanges, executing that trade on the most cost-effective venue and capturing real time market data for all instruments and venues, and conduct post-trade analysis to ensure customers have been given best execution, including determining pre and post trade accurate market price of complex over-the-counter (OTC) derivatives.
Â· Reporting. MiFID requires financial institutions to prove that they have given customer âbest executionâ and, when applicable, provided customer with âsuitable trades or servicesâ. The reporting solution enables financial institutions to provide real-time and historical reports for both internal and external consumption.
Â· Market connectivity. Banks, brokers and investment managers can use this solution to integrate their systems with any trading venue using FIX or FAST. It also allows the consolidation and distribution of market data feeds internally and externally to the organisation.
Â· Reference data and trade history. This enables the capture and storage of more than five years of relevant market and trade data in accordance with MiFID directive (which requires a minimum of five years).
Â· Systematic internalisation. Using this solution, brokers can take trades onto their own book and match them with in-house stock inventory.
Â· Systems integration. This solution has been developed to allow the significant need for integration of internal systems in financial institutions brought by MiFID.
These solutions use the MicrosoftÂ® 2007 Office system, Microsoft SQL Serverâ¢, Microsoft BizTalkÂ® Server, Microsoft SharePointÂ® and Microsoft WindowsÂ® 2003 technology.