Covers ESMA and FCA ToTV eligibility for Transaction Reports and Trade Reports
The concept of “ToTV” or “Traded on a Trading Venue” which is relevant for a number of provisions under MiFID II such as Transaction Reporting and Trade Reporting (transparency) eligibility is something many firms have had difficulty pinning down – not least because the regulators, whilst keen to reference ToTV themselves as triggering the obligations, have been somewhat vague in defining exactly what it is in the legal texts of the directive and regulation necessitating a slew of guidance and follow up revised guidance on the subject. Firms have spent millions trying to determine what is and what is not ToTV (and hence, reportable or not reportable). In the UK alone, in 2019 two large and respected firms with substantial compliance and IT budgets were fined tens of millions for failing to solve this problem – 14 years after the original drafting of the 2004 MiFID showing that both time and money were not sufficient.
Most firms likely outsource (or so they think) this problem to an ARM or APA. Using an ARM or an APA still requires that the firm itself take reasonable steps to verify the completeness, accuracy and timelines of reports made on their behalf. So the question still remains…
How can the firm, which is ultimately responsible, ensure they are reporting all that they should be reporting and not reporting that which they should not? How can a firm sanity check report eligibility before and after they’re submitted? How can a firm demonstrate they are in control of their reporting processes when the regulator comes knocking? Where reporting through another entity such as an ARM, how can a firm show they have taken steps to ensure reports generated on their behalf meet their obligations?
Using over four years of the regulators own data exceeding 100 million records from both the EU and UK, then enriching this with data obtained using Oktris consolidated tape technology, Oktris can determine if an instrument is ToTV now and if on a certain date in the past, it was ToTV.
As ToTV determination is not as trivial as it appears on the surface, whilst we think our interpretation of ToTV is great, Oktris ToTV allows a firm to customise the rules around how the ToTV determination is made in-line with their own interpretation - even on an instrument by instrument basis if necessary.
Oktris ToTV was built to integrate into a firms automated straight through processing flows – for example as a pre-submission eligibility check, or as a post submission sanity check or as part of a spot-checking tool for reports submitted on a firms behalf.
Oktris ToTV is enterprise strength, having been benchmarked at thousands of checks per second.
Oktris ToTV is reliable having been up for over two years with no unscheduled outage.
Oktris ToTV is offered via the industry standard FIX API or as a tool offered via our web portal for human operators to query instruments.
We'd like to offer a standard solution based on the regulators own data to the thousands of firms out there with these obligations. If large banks with near infinite resources fall foul of the regulator after 14 years of trying to get it right, we think firms need all the help they can get.DARRENCEO, Oktris Limited
Instrument and Firm data
Enrichment using the Oktris Rules Database
Oktris ToTV Rules engine determines ToTV status using Oktris defaults or a firms custom rule settings
Industry standard FIX based API or Web Interface for human interaction