With best execution requirements under MiFID still ill-defined, trade monitoring systems need to be inherently flexible. eflow global has built on its transaction hub technology to build a comprehensive transaction monitoring platform that also provides a channel to share data and reports with buy-side clients to demonstrate transparency.
eflow’s TransacTzar software provides evidence that a trading firm has achieved ‘best execution’ and has complied with the MiFID regulation. It does this via a comprehensive transaction monitoring platform that re-creates and stores the market conditions, trade by trade.
The software enables all trades (and not just a sample) to be tested against policy in near time and only those that breach policy are presented in a Web Basket for attention and/or escalation. This process applies for all TransacTzar modules including market abuse, trader and surveillance.
It also provides the facility to recall any trade, order, grouped orders, where groupings may be by client, trader, security or any grouping that regulators and /or clients may require for verification of adherence to policy and general treating customers fairly (TCF) standards.
The solution can also present data to clients to stimulate business. TransacTzar is able to present this data automatically for specific clients demonstrating how a broker has served the clients best interest. It can produce ad hoc reports for clients, and also provide secure client reach through for those clients that a broker wishes to allow to view all their trades.
The technology is delivered by a hosted application service provider via the internet on a fee-per-transaction basis to cater for both small and large users. It has been deployed by a number of European financial institutions, including MF Global, which went live with TransacTzar in June 2008.
Finextra verdict: New regulations are a boon to software companies that can help financial institutions address their compliance needs. eFlow has built a dedicated application for MiFID trade monitoring, and retained the flexibility to adapt the hosted solution for its clients as market requirements change. It has also realised the customer service angle of MiFID, and enabled its clients to use the solution as a marketing tool.