This case study is about an asset management firm that is active in the currency markets and has a proprietary trading platform.

The Challenge

Asset management firms today face increasingly more regulatory reporting requirements since MiFID II came into effect on January 2018. Firms are required to issue daily Transaction Reports and implement a process to monitor client execution quality.

Towards the end of 2017, the firm originally took on the task of MiFID II reporting directly to the FCA. This proved complex, time-consuming and a drain on resources, so they chose an Approved Reporting Mechanism (ARM) to report on their behalf instead. The firm was also being merged with a global asset manager and it was essential for them to be fully compliant beforehand.

They were therefore looking for a comprehensive reporting solution that would allow them to report transactions seamlessly under MiFID II. Given their poor experience with self-reporting and their unsuccessful use of an ARM, the firm was particularly selective about their future vendor. They were in search of a firm with a good reputation for reporting accurately; deep regulatory expertise; a fast onboarding process; and superior technology to support the integration of their system.

The Solution

The Cappitech platform seamlessly connects with trade reports from trading platforms such as EMSs and OMSs, and also supports out of the box all ARMs and TRs formats to provide automated MiFID II compliance for those customers regulated by all main European NCAs such as the FCA, CySEC, CBOI and MFSA (among others).

Designed with a flexible architecture, Cappitech is a cloud-based Software as a Service platform that automates the reporting process for customers and provides instant insights based on trading data. The platform connects to customer trade records, enriches the data, allows for business logic to be applied where required, validates trades and reports directly to an ARM on the customer’s behalf.

Information is made available in real-time via an intuitive analytics dashboard and issues flagged to the customer at a glance. The platform also sends a daily email confirmation and alert of any non-compliance. As a result, clients are able to improve data-driven decision-making, better monitor for best execution – all while significantly reducing the cost of compliance.

 

Key Benefits:

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One-stop-shop for Global Reporting
At first, the asset management firm used Cappitech for MiFID II. Today they use Cappitech for several reporting regimes.
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Defined & Practiced Vendor Switching Process
Experienced in transitioning from other vendors, the process took 6 weeks
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Easy Transfer of Data
With Cappitech's plug-in there was no need to change the format of data
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Dedicated & Experienced Team
Benefitted from personalized process and knowledgeable team
Working with Cappitech was so refreshing. After having significant reporting issues with other vendors, we turned to Cappitech who managed to get our reporting live within weeks. Thanks to their market knowledge and understanding of the instruments traded, and high level of professionalism, we continue to accurately meet our compliance obligations in a hassle-free, automated way
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The Result

Our client was up and running and reporting within six weeks from their first kickoff meeting. Furthermore, after nine months of non-compliance, they had cleared the backlog and was fully up to date. As with all Cappitech customers, the relationship manager and professional services team played a crucial role in the successful onboarding of the asset manager. Using a tried and tested onboarding process, Cappitech was successful in speeding the client’s ability to start reporting. Cappitech has an existing plug-in for ARM and TR formats, making the transfer of data simple. All our client had to do was send us their data files in the current format they had it in and and we took the file as is. Furthermore, the relationship manager was in daily contact throughout the process in order to ensure a seamless go-live. The customer continues to benefit from the expert customer support team and dedicated relationship manager. Our client was also able to significantly reduce its cost. In addition to Cappitech’s efficient process that reduces costs, Cappitech also benefits from trade volume fees when reporting and passes these on to customer through attractive list pricing. Furthermore, our client is spared from managing commercial and contractual obligations with the ARM since Cappitech’s solution includes these costs and obligations. Our client was so pleased with the MiFID II solution that they are now using Cappitech for several other global reporting regimes and reconciliation.