Tora And NEX Partner for Mifid II Reporting

Trading technology provider Tora has expanded its support for transaction and trade reporting under the revised Markets in Financial Instruments Directive (Mifid II) by integrating its trading system with NEX Regulatory Reporting.

Under Mifid II, asset managers are required to submit transaction reports under the European two-sided reporting model, in which both counterparties are required to file trade and transaction details with Approved Reporting Mechanisms (ARMs) and Approved Publication Arrangements (APAs).

“The integration is supposed to help address some of the operational concerns [clients had],” says David Tattan, head of European business development for Tora. “So thinking beyond just the execution, how do we make life easier for funds? Rather than having them to deal with multiple different providers, copying and pasting or sending emails or doing things the slow way, the process we set up with NEX basically allows them to cut the time and energy that they focus on making things work operationally.”  

With NEX, which is both an ARM and APA, it is creating straight-through processing for transaction reporting. While Tora already has integration with other ARMs, the partnership with NEX to be an additional ARM is driven by recent client demand.

While the Mifid II requirements chiefly cover the European markets, the partnership has a global scope. “It will start with European markets,” says Chris Dingley, head of sales at NEX Regulatory Reporting. “But many firms—and this [was] a surprise to us when we started looking at the market—are maybe essentially US-domiciled with a small office here in London. Or a Singapore-based firm, Hong Kong-based firm with a London-based trading team. If you are Mifid-authorized here in the UK [and] you want to sell for wider audience, or you want to take on managed accounts [for] those sorts of activities, then you need to become Mifid licensed. That drags in a lot of firms which we would think of as non-European.”