RegTech 100 company NEX Regulatory Reporting has launched its short code identifier service to help market participants meet their MiFID II and GDPR requirements.
Under MiFID II, market participants are obligated to include the personal data of the decision maker and/or client responsible for the execution of the transaction in their reports so they can be identified by the regulator. They must also ensure the provision and storage of sensitive natural persons’ data is done in a secure and effective manner.
NEX claims its Industry Standard Common Identifier’ (ISCI) enables firms to manage these requirements while also meeting future GDPR requirements which dictate that personal data should be kept in an identifiable format for no longer than necessary and be anonymised if retained.
ISCI is a venue- agnostic, highly encrypted service where personal identifier information (PII) can be uploaded either via the HTML 5 interface or over SFTP connection allowing for integration with internal HR or middle office systems. The inputted data is validated against ESMA standards as part of the upload process to ensure compliance. ISCI protects PII data (required by RTS 22) until the last point of the process before a transaction is enriched with decision maker detail.
Alternatively, if firms are subject to the MiFID II obligation to maintain order records (required by RTS 24) information is held securely until order records are required to be presented to the regulator.
In preparation for MiFID II, approximately 140,000 individual short codes (traders and algorithms) representing 2,140 individual LEIs (firms) were uploaded to ISCI from member firms, for the purposes of transaction reporting and order record keeping.
Collin Coleman, head of NEX Regulatory Reporting, said: “Providing a secure data repository for personal information that can be used by the entire market will reduce the data management and storage costs for all involved and ensure that the data has been validated to meet all regulatory standards. We’re also enhancing data protection by investing in highly sophisticated data security.”
London-based NEX Regulatory Reporting includes Abide Financial and Abide Financial DRSP, an FCA regulated entity. Its platform introduces cost efficiencies, mitigates operational risk and provides regulatory reporting effectiveness according to its website.
In addition to European regulatory environments (EMIR, MiFID/II, SFTR, REMIT), NEX also provides specialised reporting services for entities subject to international regulatory regimes such as Dodd-Frank, ASIC (Australia) and MAS (Singapore).
Last year, NEX was hand-picked by a panel of industry experts for the RegTech 100, a list of companies that every financial institution should know about in 2018. The RegTech 100 is part of the Global RegTech review – an essential, in-depth analysis of the global RegTech market.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
