London, 30 November, 2021: 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 – ensuring that reporting has been done completely and accurately.
Complete and accurate reporting data is critical for regulators to maintain fair and orderly markets. However, the industry has struggled with data integrity issues since MiFID II came into effect.
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.
To enhance confidence in the financial markets, the industry needs to improve regulatory reporting completeness and accuracy. This is widely recognised and regulators in the UK and EU are intensifying their enforcement action. SteelEye’s Three-Way Reconciliation solution helps firms address data integrity issues by automating the reconciliation process between the regulated firm, NCA and/or ARM.
Commenting on the announcement, Matt Smith, Chief Executive Officer at SteelEye said: “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. Given our mission to help establish and maintain trust in the financial markets by making it easy for firms to accurately comply with regulations – this was something we were keen to address.”
Also commenting on the launch, Matt Storey, Chief Product Officer at SteelEye added: “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.”
Learn more about SteelEye’s Three-Way Reconciliation solution here.
How SteelEye’s Three-Way Reconciliation solution works:
SteelEye’s three-way reconciliation system compares firms’ original reporting files against the data received by the NCA and ARM. Once the files have been uploaded into SteelEye, the reconciliation takes less than 20 seconds – returning a detailed list of:
‘matches’ where the transactions in the three files match (meaning the report is accurate), or
‘breaks’ where one or several transactions do not match.
Importantly, the system highlights where errors have occurred, allowing clients to easily create cases for remediation, address the error and report the correct data.
We simplify trade and communications oversight and regulatory reporting through a unique, fully integrated, and cloud-based platform. By connecting large volumes of data from multiple sources, SteelEye enables firms to meet regulatory obligations more quickly, efficiently, and accurately than any other solution. With SteelEye, you gain full visibility and control of your trading and compliance operations, with cutting-edge analytics that provide timely insights on risks and opportunities. For further information, please visitwww.steel-eye.com.