Technology helps Client Classification, Execution, Reporting and Internalisation

Technology helps firms comply with directive's requirements including all client classification, best execution, reporting and systematic internalisation

26 January 2007

Microsoft Corp (Nasdaq: MSFT) and Singularity along with a core group of Capital Markets partners today announced the launch of a new package of Markets in Financial Instruments Directive (MiFID) solutions for what Microsoft sees as the main challenges of MiFID: planning and testing; client classification; best execution; reporting; market connectivity; reference data and trade history; systematic internalisation; and systems integration. The eight technology solutions, which can be offered as a complete package or as individual components can be implemented according to a financial institution's individual compliance needs.

With the deadline only ten months away, a considerable number of financial institutions are still looking at ways to upgrade their IT systems to ensure they comply with these new requirements. "By working extremely closely with our partners we have developed an offering that serves all financial institutions needs to comply with the EU directive," said Ian Warford, industry director for securities and capital markets at Microsoft EMEA, Financial Services. "And because Microsoft technology is familiar to people working in financial institutions and easy to integrate with existing IT systems, the total budget required to implement a solution that ensures full compliance with MiFID is very cost-effective."

“We're delighted to form part of this select group of MiFID solution providers”, said Dermot McCauley, Director of Singularity's Capital Markets unit. “There are huge challenges there for institutions and we think this initiative Microsoft provides clear direction on how to overcome them”

The solutions provided will include:

Planning and testing. This solution is divided into three parts: impact analysis, MiFID documentation, and exchange simulator and provides a complete analysis of the impact MiFID will have on an organisation. It assists in project planning and implementation of the directive; helps automate the process of compliance and mapping its progress; and enables financial firms to simulate market data feeds, venue connections and trade flow.

Client classification. This provides complete modelling, implementation and document storage of the entire client classification process for regulatory purposes.

Best execution. The best execution solution includes pre-trade and post-trade analytics. It enables banks and brokers to electronically evaluate the cost of doing a trade on various exchanges, executing that trade on the most cost-effective venue and capturing real time market data for all instruments and venues, and conduct post-trade analysis to ensure customers have been given best execution, including determining pre and post trade accurate market price of complex over-the-counter (OTC) derivatives.

Reporting. MiFID requires financial institutions to prove that they have given customer ‘best execution' and, when applicable, provided customer with “suitable trades orservices”. The reporting solution enables financial institutions to provide real-time and historical reports for both internal and external consumption.

Market connectivity. Banks, brokers and investment managers can use this solution to integrate their systems with any trading venue using FIX or FAST. It also allows the consolidation and distribution of market data feeds internally and externally to the organisation.

Reference data and trade history. This enables the capture and storage of more than five years of relevant market and trade data in accordance with MiFID directive (which requires a minimum of five years).

Systematic internalisation. Using this solution, brokers can take trades onto their own book and match them with in-house stock inventory.

Systems integration. This solution has been developed to allow the significant need for integration of internal systems in financial institutions brought by MiFID.

About Microsoft in Financial Services

Microsoft's Financial Services group helps financial firms leverage technology to amplify the impact their people can deliver to drive business success. We help our customers in banking, capital markets/securities, and insurance achieve four business outcomes: develop relationships, drive innovation, improve operations, and build connections. To do this, we focus our products and technologies, and our work with leading solutions, services and hardware partners, on key areas where we believe we and our partners can deliver exceptional value - those areas include advisor platforms, channel renewal, core banking, enterprise risk management and compliance, insurance value chain, and payments. For more information, visit http://www.microsoft.com/financialservices.

About Singularity:

Singularity increases the performance and agility of business processes by rapid implementation of its industry-leading Business Process Management (BPM) products.

Singularity’s mission is to populate the world with agile organizations. As the leading Business Process Agility specialist we today serve clients in over 30 countries from our offices in London, New York, Singapore, Ireland and India and through our network of partners globally. Acclaimed by leading industry experts, as the best in our field, we provide a unique combination of thought leadership and practical help that creates a new generation of successful organizations.

For further press information please contact Kathryn McDevitt at Singularity.
Email: marketing@singularity.co.uk, or telephone: + 44 28 71 267767. For more information, please visit http://www.singularitylive.com or http://www.singularity.co.uk

Download Press Release | More Press Releases