Steve Toland, Founder, today announced the launch of TransFICC, the London-based FinTech that provides technology to address the issues of fragmentation, market data throughput and MiFID regulation, for clients trading in the Fixed Income and Derivative markets.
In January 2018 MiFID II/R will require changes to the trading, clearing and reporting of bonds, commodities and derivatives. Banks and the buy-side will need to update their technology and workflows to meet transparency and best execution requirements, whilst trading venues will need to meet requirements for transparency, market surveillance, system resilience and tick size regimes.
In 2015 GreySpark Partners stated that "the launch rate of new venues with global ambitions is accelerating from one or two per year between 2010 and 2011, to an average of three per year in 2012-2013, seven new platforms went live in 2014, and no less than a further eight are already announced for 2015". In that context, GreySpark also found that "for 73% of buy-side traders, “sourcing liquidity” is the biggest challenge they are facing today".
TransFICC is a new technology company with expertise in building the fast, flexible and scalable technology required to meet these market changes head on. TransFICC's technology will use open source components focused on high performance messaging. This technology enables coordinated timing between fragmented venues, scalability of market data, and the robust controls and reporting required under MiFID II/R. The TransFICC development team has significant technical expertise, having previously worked for LMAX Exchange, recognised for its technological excellence and innovation.
“MiFID II regulation will require the Fixed Income and Derivative markets to have a greater degree of risk control, which needs to operate across all instruments. This requires technology that can provide high performance, flexibility and scale”, said Steve Toland, Founder of TransFICC. “We formed TransFICC in response to banks and the buy-side asking for solutions to these issues and a more flexible business model."