TRAction, a regulatory reporting services provider, has launched a new solution to assist UK and European investment managers with their MiFID II obligations to monitor and give clients the best possible execution outcomes.
The product, Best Execution Monitor, compares transaction reporting data against Refinitiv data from the relevant time a trade has been executed. The software then displays statistics about the quality and pricing of execution. The industry is on the lookout for more sophisticated best execution analysis, with around a fifth of all investment firms in talks with the FCA about errors in their transaction reporting under MiFID II, according to an FOI request carried about consultancy Duff & Phelps.
Commenting on the release of Best Execution Monitor, Craig Allison, of FP Markets said: "While well intentioned and a step in the right direction, we found the MiFID II best execution legislation vague and lacking clear procedures. Using the TRAction fintech platform, the procedure and logic is clearly defined giving us the ability to view all transactions as compared to the equivalent Reuters data as well as being displayed in a graphical report."
Quinn Perrott, co-CEO of TRAction added: “With numerous firms still not getting their transaction reporting up to scratch two years on from MiFID II, there has never been a more pressing need to understand the quality of trades being executed. Our new solution leaves no stone unturned for investment managers. All trades will be required to be monitored, not just the ones required under the transaction reporting rules, but those trading on non-MiFID II trading venues.”