Automated reporting of transactions with financial instruments
From 2018, the ‘Markets in Financial Instruments Regulation’ (MiFIR) will require investment firms based in the EU or EEA to report transactions with financial instruments. To comply with this new regulation, Alphasys has developed a secure interface for independent asset managers or financial intermediaries (FIMs).
NetfolioMiFIR enriches the data (which are either sent electronically or entered manually) with MiFIR-related data and forwards them directly or via an ARM (Approved Reporting Mechanism) such as UnaVista to the regulator. Delivery via ARM is only possible if the FIM has an account.
Currently the delivery to the following regulators is possible:
- AFM (Netherlands)
- BaFIN (Germany)
- CySEC (Cyprus)
- CentralBank of Ireland
- FMA (Liechtenstein)
ARM (Approved Reporting Mechanism)
- Athex (Greece)
- UnaVista (London)
- legally compliant reporting to the regulator
- automated data enrichment with transaction data
- Reports are sent via file upload, NetfolioMiFIR’s web service or ARM to the regulator, for instance to the Financial Market Authority of Liechtenstein (FMA) or German Financial Supervisory Authority (BaFin)
- the FIM retains data sovereignty
Delivery to the regulator
Once the transaction data has been enriched for the regulator and has been approved, they can be sent to the regulator. There are a few options for delivery:
- 1. Direct delivery of the data to the regulator via an automated interface.
The system is designed to enable fully automated delivery (no action by the FIM is required). This option must be requested specifically. The FIM remains responsible for the data contents. If the system identifies an error, the FIM must correct it manually.
- 2. In compliance with ESMA guidelines, download a spreadsheet (Excel file in CSV format) to the computer of the independent asset manager: Direct delivery to the regulator or forwarding via ARM.
Simple MiFIR data enrichment
According to the MiFIR, transaction reports must be sent to the regulator by the end of the next working day (Art. 26 of Regulation (EU) No. 600/2014 dated 15 May 2014). Some banks, such as UBS, provide transaction data to the asset managers electronically. To complete MiFIR reporting, this data must be enriched with information that only the FIM can access.
NetfolioMiFIR is available as a built-in addon to the asset management solution Netfolio. For FIM without IT infrastructure or the proper software, we can provide NetfolioMiFIR as a service starting at CHF 100 per month. The contract for using the interface is made with Alphasys IT Services AG. The data is hosted securely in Switzerland or by the Netfolio customers themselves. Data protection and security have the highest priority and are guaranteed.