Swedish technology supplier Cinnober has released a subscription-based hosted service for banks and brokerages looking to create an Organised Trading Facility in line with new European marketplace regulations.
To achieve compliance with MiFID II reforms, banks and brokers will have to change their private exchange-like trading systems and crossing networks to formal venues, or OTFs, publicly posting prices at the end of each day.
Cinnober's Tess OTF Software as a Service (SaaS) package comprises a fully hosted and managed exchange-quality OTF system, says the vendor. Tess OTF is based on Cinnober's TRADExpress Trading System and makes the company's marketplace technology, including matching engine and surveillance, available as a subscription service.
The service pricing is based on usage in terms of capacity level, asset classes and functions. The subscription fee covers both software license and services, and there are no major startup costs, says the vendor.
Nils-Robert Persson, executive chairman of Cinnober, promises time to market for prospects can be achieved in a matter of weeks.
"This release now makes it easier for European market participants to get off to a flying start implementing MiFID II compliant services, and in a very cost-efficient way," he says. "This offering is an attractive alternative for people who would otherwise have to rely on expensive internal development to create what they need."
The Commission has estimated the overall costs of the MiFID II review at €512 to €732 million for one-off compliance and between €312 and €586 million for ongoing costs.