Background
MiFID aims to make financial markets more efficient, resilient, and transparent and ensure investors' protection.
MiFlD Requirements
MiFID regulatory reporting requirements cover the following reports.
- MiFID II Transaction Reporting
- MiFID Post Trade Transparency Reporting
- Best Execution (Annual Reporting)
- Client Reporting —Art 59 & 60
- Client Reporting —Art 62 (10% Drop Monitoring)
- Clock Synchronization
Mindtree Solution
| Customer Challenge | Mindtree’s Solution | The business benefits |
| Before the merger, both the companies had different solutions which had to be integrated to produce the MiFID Trade report, an immediate transaction reporting which is done on the next day from the trade date. The Financial Conduct Authority has set a strict deadline to fix all the problems and risks involving MiFID II transaction reporting and complete the back reporting of all the affected transactions since the beginning of reporting. The transactions volume was ~24 million. The project was critical to the client's reputation, and thus, the higher management was seeking updates and full transparency of the tasks and results each day. Since the reporting was done through the ARM, the team had to plan around the UnaVista daily upload limits without affecting the daily BAU reporting process. | Mindtree fixed the BAU issues with the existing solutions of both companies. The team worked on changes for the Brexit requirements for trade and transaction reporting and created a back reporting framework to enable re-submission of old data Mindtree also worked on integrating the trade and transaction reporting solutions for the strategic systems. | These resulted in the following benefits: -Integrated solution. -Improved reporting -Back reporting framework with enhanced management reports
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| The Financial Conduct Authority has set a strict deadline to fix all the problems and risks involving MiFID II transaction reporting and complete the back reporting of all the affected transactions since the beginning of reporting. The transactions volume was ~24 million. The project was critical to the client's reputation, and thus, the higher management was seeking updates and full transparency of the tasks and results each day. Since the reporting was done through the ARM, the team had to plan around the UnaVista daily upload limits without affecting the daily BAU reporting process. | We analyzed the entire BAU transaction reporting process and identified the components that could be reused by minor tweaking. The team ingested the transaction data from the FCA MDP portal for the last two years. The team also built a solution to provide new reports by fixing the derivation of reportable fields, which rely on unchanged reference data and could be constructed automatically to enable overrides for other fields. We then built a process to handle new and cancellation file batches, and to provide management and accuracy reports. | -The entire back reporting of all the category 1 issues for two years was fixed and reported within three months of project initiation. -The newly built reconciliation process identified and accounted for all the records, which went into the process and their progress till their submission to the FCA. -Full transparency of the entire plan with regular management reports regarding the progress. -Identified and fixed issues on the go. |
MiFID Transaction Reporting
