Simplifying MiFID II and EMIR reporting through automation and cost reductions
When Cappitech began to support technology for EMIR regulation when it went into effect in 2014, they aimed to answer the question of whether you can build a ‘one size fits all’ platform that could still be flexible to meet the new reporting requirements?
On one hand, the end Transaction Reports required for EMIR are very similar regardless of the types of derivative products traded by financial firms. On the other hand, file formats used to store trade information as well as reference data needed to populate EMIR report fields varies significantly between different firms.
To create a solution that is both flexible for company specific customizations and scalable across the spectrum of the financial industry, Cappitech built the Capptivate reporting platform. A cloud based software as a service solution, Capptivate is file format agnostic and adapts to the trade data information of its customers.
The technology works by normalizing trade files received from customers into a standardized form. Through this process, Capptivate can support proprietary file formats as well as aggregate multiple trade files such as from firms trading with multiple platforms and Prime Brokers. The underlying foundation of handling data has also enabled Capptivate to scale its support to include MiFID I & II reporting functionality.
As simplicity for customers is a core belief for Cappitech, partnering with Colt PrizmNet, is a natural fit for the future of Capptivate. Buyside and sellside firms integrated within PrizmNet can now easily send trade data through Capptivate to create MiFID and EMIR reports to comply with the regulation.
The Colt PrizmNet financial extranet also provides an additional layer of security for trade data sent between the reporting firm and Capptivate’s technology that is deployed in the cloud on Amazon Web Services. The security feature is especially important when MiFID II goes into effect as the new regulation requires financial firms to provide sensitive client personal data within the reports.
“At Cappitech we are seeing growing interest from financial firms looking towards cloud solutions to increase operational efficiency. But, client and trade data security is still a major concern when deploying products in the cloud. We are excited to be integrating Capptivate within Colt PrizmNet and implementing with them a unique and secure instance of our solution within AWS to meet the demands of the financial industry” — Ron Finberg, Business Development Manager, Cappitech.