Banks adopt Droit’s MiFID II trade compliance engine

Six major global banks have adopted Droit Financial Technologies’ fully-digitized MiFID II trade compliance engine.

The service from Droit was launched in January ahead of the MiFID II deadline, and instantly expands the ability of financial institutions to comply with the thousands of pages of MiFID II regulations. Goldman Sachs Asset Management has also gone live as the first buy-side client.

The new platform, whose clients include BNP Paribas, CACIB, Goldman Sachs (including both its broker/dealer and GSAM entities), and UBS, is an extension of Droit’s ADEPT (the operating system for regulation).

It provides the current and complete digitised machine-readable MiFID II rule text and machine-executable implementation, enabling complete verification and auditability of every trading decision, including traceability to the letter of the law.

“Droit has successfully implemented an innovative and exciting platform which helps us strategically respond to industry and regulatory changes, like MiFID II, in the interest of better serving our clients,” said Cyril Cottu, global head of eCommerce and digital, BNP Paribas Global Markets.

“It is a core part of our digital strategy to work with leading providers like Droit to complement our in-house expertise to stay at the cutting edge of digital global markets,” he added.

MiFID II is the latest in the range of global regulations implemented in ADEPT which has been in live production since March 2014, and which now encompasses derivatives and securities across all asset classes, all G20 aligned regulatory regimes, global CCPs and execution platforms.

Droit was founded in 2012 by a team of veteran derivative traders, quants, ecommerce specialists and technologists with front-line experience and expertise with products, markets, regulations and systems. In December 2016, the company announced a $16m Series A investment from Goldman Sachs, Wells Fargo, DRW Trading and Pivot Investment Partners. Droit is also part of the “In-Residence” program at JP Morgan.

“Digitization is much more than an exercise in tagging data; it’s the complete analytic structuring of one of the financial markets’ largest ever pieces of legislation,” said Satya Pemmaraju, CEO of Droit.

“Droit provides the full stack, starting with digitising the actual legal texts into an open, standard, machine-readable format through to standard executable implementations within real-time systems. As regulations live and breathe, so our clients’ implementations and legal sources evolve in synchronicity.”


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