In 2018, the European Securities and Markets Authority (ESMA), which is the responsible supervisory authority, launched the reform of MiFID II, with a broader scope in terms of transparency, instruments and coverage, for investment and trading firms. The primary goal behind the introduction of this transaction reporting system was to protect the investors and strengthen both the regulatory and the compliance industries.
Even before the implementation of MiFID II, the MiFID regulation was in force in the European Union as of November 2007. The MiFID regulation is considered a cornerstone of the EU regulations.
In October 2011, the European Commission adopted a legislative proposal for the revision of the MiFID. After more than two years of debate, the Directive on Markets in Financial Instruments repealed the Directive 2004/39/EC and the regulation on markets in financial instruments was adopted by the Council of the European Union and the European Parliament, and was published in the official EU Journal on 12 June 2014.
The new MiFID II and MiFIR ensure fairer, safer and more efficient markets and facilitate greater transparency for all eligible firms. The mandate includes new reporting requirements and tests which will increase the amount of information available and reduce the use of dark pools and OTC Trading.
Under the MiFID II, Eligible firms are required to report on nearly all instruments traded on regulated markets, Multilateral Trading Facilities (MTFs), Organised Trading Facilities (OTF) and financial instruments, which creates the need for a dedicated MiFID reporting solution for quality, error-free reporting of these transactions.
The submission of MiFID II reporting is on a T+1 basis, which means that reports are to be sent before end of the day following the transaction day.
MiFID II requires financial firms to share information regarding all eligible trades in regulated markets within one day of the transaction day. With the significantly enhanced number of reporting fields (65 fields) to be populated in the report. This means that every qualifying transaction needs to be collated and kept ready for reporting by the end of the following day, which makes it extremely challenging for eligible firms to comply, unless they have a prompt solution.
The solution should cover a broader set of trading and financial instruments. This is a tedious requirement to satisfy, as it requires collating data from multiple sources and preparation of the report on a daily basis. Also, the error reports from the regulator are in XML format, which is not user-friendly; preparation of the report is difficult, as it takes time to understand and resolve it.
Eligible firms are required to generate valid reports that adhere to and are compliant with various validation rules listed by the ESMA; if the transaction report contains validation errors, it will be rejected. Reporting entities have to ensure that their report passes Content and File Validation to ensure successful reporting.
Does your current solution provider offer the flexibility to adapt to evolving regulatory requirements? DataTracks does!!
Agile and Adaptable Solution
The MiFID II solution offered by DataTracks is designed to adjust to the changing requirements of ESMA; keeping in mind the frequency (T+1) of transactions, it ensures that the application selected for MiFID II transaction reporting is user-friendly and compliant with the latest regulatory changes for quality reporting.
Pre-validation and Effortless Data Entry
The solution has incorporated all the ESMA validation rules, with control checks in place so that users get prompt error messages and a solution guide for in the case of errors. Country-specific validation, to ensure regional compliance, coupled with a flexible data entry system, let the user choose how they want to import their financial data and the volume of the data, as the solution can be scaled to accept large volumes of data.
Quality and Consistent Reports
Firms can manually enter the financial data or import it directly from the spreadsheet via the automated mapping functions, or by interfacing the solution directly with the underlying financial systems. And not just that! The easy review, comment and moderation options for financial reports that are available in the application, allow users to ensure consistency of filing and quality of the generated report.
All customer data is hosted on a Tier 1 secure Cloud. Furthermore, the solutions offered by DataTracks are ISO certified. So you can rest assured: DataTracks conducts regular granular audits to ensure maximum security of data.
Firms can manually enter the financial data and import it via the automated mapping functions directly from the spreadsheet or by interfacing directly with the underlying financial systems. And not just that, but the easy reviewing, commenting, and moderating financial reports allow users to ensure consistency of filing.
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DataTracks stood out from other providers of ESEF solution for its off the shelf technical solution that suits us, many years of experience and suitable references, while at the same time providing the solution at a competitive price. DataTracks has been very responsive and cooperative throughout the entire time of the ESEF vendor selection process. Good experiences kept on going also at the time of our training process. They shared with us every little detail and guided us through the mapping and tagging process. Once again, it turned out that we had chosen an excellent outsourcing partner for the ESEF solution. At this point, we are very satisfied with DataTracks services and are looking forward to take the next stepswith them.
Our focus was primarily on choosing a user-friendly and easy-to-use solution to enhance transparency and simplify our reporting efforts. The introduction of DataTracks’ Rainbow solution for ESEF convinced us as the overall package of functionality, technical requirements, intuitive operation, and support by their experts
Voor de migratie van Excel naar XBRL is contact gezocht met Datatracks. Met behulp van hun AIFMD software en instruction manual wordt het vrij éénvoudig om de Excel rapportages te downloaden, te bewerken en als XML-bestand aan te kunnen leveren.
Op vragen (zowel telefonisch als per e-mail) is zeer behulpzaam en snel gereageerd, kortom mijn kennismaking met Datatracks heb ik als zeer positief ervaren.
We worked with the incredible assistance of DataTracks to ensure we successfully filed our FINREP/COREP report with the regulator. We found DataTracks solutions easy to use. Their technical support team was knowledgeable, easy to work with and assisted us round the clock to ensure we filed the report on time and without errors. All this at a competitive price point. Our experience has ensured we will have no hesitation in using the services of DataTracks on an ongoing basis.
We have been using DT’s SII software for the successful submission of the last three quarterly and the last annual QRTs to the regulators with the application is very user friendly and helpful in identifying any validation errors, giving sufficient and accurate information for the identification and correction of these errors. The preparation of the XBRL and excel output files normally runs within a reasonable time and hence this enables the user to regenerate XBRL files if needed. We are very satisfied form the customer support which is efficient and available at any day and time. We are impressed of the response time to our queries. In conclusion we are very satisfied from the application and we would definitely recommend it.
Compared with other tools it is much more efficient and user friendly. Especially the validation process and the way errors are reported are a big improvement. Besides this they provide world class support. And even if the error reports can’t help you to the right answer, the people behind the tool of customer support are very helpful. Their response time is very good, even outside office hours. Most important, they have the drive to help you till the last error is solved.
I am writing to let you know that “Glacier”, the new application for Solvency pillar ii reporting, developed by your company is very user friendly and very quick. It is also very helpful , enabling the user to easily identify and correct any validation errors. Furthermore the, production of the output XBRL and excel file is also quick and this saves considerable time especially in cases where for any reason the input and output process needs to be run several times for reasons not related to the application itself. I would recommend it to any company regardless of the its size since it is a simple and simultaneously efficient application which is what is needed for the particular task.
We were already really pleased with the ‘old’ Datatracks tool, but it was a pleasant surprise that you launched Glacier. It is a great improvement! It saves us a lot of time and now it is easier to validate the file, make some adjustments, upload and validate again. I also want to mention the service level you provide, we appreciate your fast response to questions and your help despite the time difference with The Netherlands.
DataTracks Glacier is a great improvement on an already good product. The processing speed is very good, but what strikes me above all is the clarity of the workflow.
The service has been outstanding and would certainly be recommended. Even though strict deadlines needed to be met, the team went above and beyond to accommodate our needs. Each and every member of the staff that we came in contact with was very friendly and approachable, qualities that added value to the streamlining of the whole procedure.
Large Slovenian Bank
Slovenian Multinational Insurance company
Investment Management Company - Netherlands
Investment Management Firm - UK
Insurance company - Cyprus
Insurance company - Netherlands
Minerva Insurance - Strovolos, Cyprus
Investment Management Firm - Malta
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