SteelEye, the compliance technology and data analytics firm, has launched an automated three-way reconciliation solution to tackle MiFIR transaction reporting issues. The technology enables firms to fulfil their reconciliation requirements, validate their MiFIR reporting data and easily address errors by automating the reconciliation process between the regulated firm, NCA and/or ARM.
The industry has struggled with data integrity issues since MiFID II came into effect and regulators in the UK and EU are intensifying their enforcement action. The reconciliation requirement (under Article 13 (3) and (4) of RTS 22) exists to enhance reporting quality by making firms validate that the data they have reported matches what was received by the National Competent Authority (NCA) (or Approved Reporting Mechanism/Venue where the NCA doesn’t provide samples). However, many firms have faced difficulties in doing this – often ending up with error prone and manual validation processes. Others have disregarded the requirement entirely.
Matt Smith, CEO at SteelEye, said in a statement: “MiFID II has presented firms with an array of challenges, and many have struggled to meet their reconciliation requirements. This has a detrimental downstream impact on the regulators’ ability to monitor the market for systemic risks.”
Matt Storey, chief product officer at SteelEye, said in a statement: “Our three-way reconciliation solution has been designed to eliminate manual error by automating the process of validating regulatory transaction reports. We believe this will go a long way in addressing reporting errors while also enabling firms to free up time and resource. In line with our other products, the Three-Way Reconciliation solution provides firms with a ‘single source of truth’ of data.”