2. Alignment with LSEG Value Chain
London Stock Exchange Group Page 2
Primary Trading
Middle &
Back Office
Clearing
Settlement &
Depository
Information
Technology
4. Page 4
Risk & Controls
Central Solutions
Approved EMIR trade
repository (all asset classes)
Approved Reporting
Mechanism (ARM) MiFID
G20 transaction reporting
_ global repository and
routing
Regulatory Solutions -e.g.
AIFMD
Short Selling
Financial Transaction Tax
Primary dealer (HRF)
EU Transparency directive
Mergers & Acquisitions
(POTAM / Rule8)
Section 793 UK companies
Rules Engine
Reconciliations
Cash & Stock
Front Office/Back Office
Broker (CFD trade)
Client Money
NAV
Intersystem / InterCompany
Transaction reporting
MiFID eligibility checking
Forward FX
Commission sharing
Back Testing (BASEL II)
ETD
Exchange (Gross & Net)
Swaps Processing
Tri Party Matching
Buy side
Executing Broker
Swap writer / prime
broker
Confirmations
Broker Matching
Broker/buy-side
Low automation
SWIFT GETC
Full lifecycle matching
& routing supported
Omgeo integration
OGD & CTM
Bilateral netting
FIX connectivity & local
matching
CCP Connectivity
Data
SEDOL Masterfile
Corporate actions
Participant trade data
LSEG historic Reference data
EMIR data feed
MiFID eligible stocks
MiFID historical data (for back
reporting)
Tick & Enhanced best price data
LEI Data Feed
CAI Data Feed
EMIR public aggregation data
Analytics
Reporting KPIs
Management Information
User Defined Thresholds
Peer to Peer
MAR Surveillance
Operational and Regulatory Risk Management Solution
UnaVista Business Solutions
UnaVista Platform Solutions
Operational and Regulatory Risk Management Solution
Regulation Risk and Controls Data & Analytics
5. Risk Management Evolution
Bespoke
Build/Buy
Regional
Solutions
Global
Repositories
Strategic
Frameworks
• Tactical local solutions
• Operational silos
• Geographically dispersed
• Single regulation, regional
solutions
• Streamlined operations
• Regional control frameworks
• Global
• Multi regulation
• Business insight
• Risk mitigation
GTR
UnaVista
UnaVista
On
Big Data
Business
Value
Tactical Regional Centralization Optimization
Reporting
Platforms
5
6. 2015/2016 Focus
27 November 2015London Stock Exchange Group Page 6
MiFIR Client
Onboarding
Q3 2016
Change to
RTS
Q1 2016
Lead MiFID
to MiFIR
Transition
Business Intelligence: Peer
to Peer, MAD Surveillance
Regulatory Reconciliations:
EMIR, REMIT, MiFIR utilities
Reference Data:
Eligibility, LEI, SEDOL,
Client Static
Bulk LEI
Allocation
Oct 2015
MiFIR
Accelerator
Aug 2015
MiFIR UAT
Ready
Q1 2016
7. MiFIR Product Roadmap
Jan
Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017Jan 2015
Rules Engine: G20 Derivatives Reporting, REMIT, DTCC Connectivity
Regulatory Reconciliations: MiFID, EMIR, REMIT, Canada, Dodd Frank, G20
Central
Solutions
EMIR L2
MiFIRRegulatory
Suite
MiFIR / APA
Production
Reference Data: MiFIR, LEI, EMIR, SEDOL, Static Data
2105-2017 MiFIR Regulatory Package: MiFIR, EMIR, G20, SFT, CPR, APA and
BI/Transaction Surveillance for all.
EMIR V2 Commodities Reporting / SFT
Static & Reference Data, MI, Peer To Peer, LEI Monitor
MiFIR
Accelerator
MiFIR
UAT
APA/
Rules Engine
Test tool ready UAT ready Production ready
EU Short Selling, Transparency, M&A FinFrag Reporting
27 November 2015London Stock Exchange Group Page 7
9. MiFIR Product Roadmap
Jan
Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017Jan 2015
Rules Engine: DTCC, REMIT, G20 Derivatives Reporting
Regulatory Reconciliations: MiFID, EMIR, REMIT, Canada, Dodd Frank, G20
Central
Solutions
EMIR L2
MiFIRRegulatory
Suite
MiFIR / APA
Production
Reference Data: MiFIR, LEI, EMIR, SEDOL, Static Data
2105-2017 MiFIR Regulatory Package: MiFIR, EMIR, G20, SFT, CPR, APA and
BI/Transaction Surveillance for all.
EMIR V2 Commodities Reporting / SFT
BI: MAD Transaction Surveillance, MI, Peer To Peer
MiFIR
Accelerator
MiFIR / Boat APA
Prototype
MiFIR
Rules Engine
Test tool ready UAT ready Production ready
EU Short Selling, Transparency, M&A FinFrag Reporting
Page 9
10. UV MiFIR Solution Suite
UnaVista
Rules
Engine
TR, ARM, EU
SS, TD, M&A
Bespoke Business
Rules
Data Transformation
& Normalization
Data Augmentation
& Validation
Repositories
Reference /
Static
Data
Regulators
Onboarding &
Connectivity
MiFIR
Accelerator
Business
Intelligence
Regulatory
Reconciliations
Boat APA
Trade
Reporting
Regulatory
Reporting Flow
UnaVista
Suite
UnaVista
Additional
Services
MiFIR Solution is part of
a comprehensive
Regulatory Solutions Suite
Page 10
DTCC
Connection
11. MiFIR – Future State
27 November 2015London Stock Exchange Group Page 11
FCA
Gateway
FCA
Zen (SMARTS)
ESMA
TREM
AMF
Gateway
BAFIN
Gateway
CONSOB
Gateway
LSE ICE MTF
ARM 2 ARM 3 Firm 5
Firm 4
UnaVista
ARM
Firm 3
DTCC
Reference
Data
Static Data
Files/API
Firm 2
Firm 1
Third
Party
Products
Reference
Global LEI
Eligibility Check
SEDOL
Trader ID
Beneficiary ID
Counterparty ID
etc…
Home Authority
(LEI)
Host Authority (Branch)
Relevant Authority (ISIN)
ISO 20022
ISO 20022
12. UV MiFIR Solution Components
Module Description
Reference Data Access to and maintenance of complete and accurate personal, product and reference
data.
Business Intelligence Proactive monitoring of reporting quality, management information, peer to peer
benchmarks and user defined thresholds.
Regulatory Reconciliations MiFIR, EMIR and other regulatory reconciliations.
MAD Transaction Surveillance Monitoring of transaction flow to identify insider trading and market manipulation
suspicious trades.
UnaVista Repositories Registered and regulated TR and ARM services.
UnaVista Accelerator Online onboarding and data quality testing tool.
UnaVista Rules Engine Hosted business logic and ETL tool allowing for:
• Data augmentation using static, reference or external data sources
• Data transformation to and from various reporting formats and standards
• Bespoke business logic and workflow applied to the data
DTCC Connector Ability to use augmented DTCC reports to fulfil MiIFR transaction reporting requirements
through a single DTCC message stream.
Page 12
13. DTCC MiFIR Connector Option
27 November 2015London Stock Exchange Group Page 13
Notes:
• Existing DTCC message
templates will be extended to
include additional MiFIR fields
• Participants can send single
message using existing
channels
• DTCC will split the message
and provide a connection
service to UnaVista ARM
• DTCC new MiFID
Infrastructure will supply DTCC
ID to LEI mapping, OCODE
assignment and Message ID
• UnaVIsta ACK/NACks
available through DTCC in
submission format(FpML or
CSV)
• NCAs ACK/NACKs and
Submission Reports available
either through UnaVIsta and/or
DTCC*
* NCA format yet to be defined
MiFIR reports flow
DTCC
Splitter
Existing DTCC
GTR Infrastructure
Reporting
Firm
New DTCC MiFID
Infrastructure
Existing
submission,
transaction,
position tables
UnaVista
MiFIR ARM
ESMA
NCA2
NCA3
NCA4
EMIR Reports
UV
ACK/ NACK
& Daily
Summaries
Encrypted
Transactions
Permission checks,
daily reconciliation
Private Data /
Clarient
EMIR
Submissions
MiFIR
Submissions
Validation,
TRANSALTION,
Augmentation
Receipt Acknowledgement
ACK/NACK Response
ESMA
Position Reports
Participant Reports
(via SSO)
14. Planned NCA Connections
27/11/2015
Competent Authority Connections:
Page 14
Priority 1 (Q1 2016) Priority 2 (Q2 2016) Priority 3 (Client Request)
Republic of Cyprus Norway Bulgaria
France Belgium Croatia
Germany Denmark Czech Republic
Ireland Finland Estonia
Italy Greece Hungary
Luxembourg Portugal Latvia
Netherlands Spain Lithuania
Sweden Malta
UK Poland
Gibraltar Romania
Austria Slovakia
Slovenia
Iceland
Liechtenstein
15. Gap Analysis
Client Engagement Timeline
Page 15
New
Jul 2015 Jan 2016 Jul 2016 Jan 2017
Existing
Standard
MiFIR
Accelerator
UAT
Onboarding
Production
Onboarding
Draft RTS ESMA Scenarios Final Policy Statement
Regulators
UnaVista Events
RTS CAG Scenarios CAG Go Live CAGUAT CAG
New
Existing
Rules
Engine
UAT
Testing
MiFIR
Accelerator
UAT
Migration
Production
Migration
UAT
Testing
MiFIR
Accelerator
UAT
Configuration
Production
Onboarding
UAT
Testing
MiFIR
Accelerator
UAT
Configuration
Production
Onboarding
UAT
Testing
MiFIR Accelerator V1 V2 V3
16. MiFIR Accelerator Program
Available July 2015
• Dedicated MiFIR Accelerator Test Tool
• Q1 2016 Access to MiFIR UAT System
• First Choice of UAT Testing and Onboarding Timelines
• Bespoke Onboarding and Migration Plan
• Early Access to Field Specification & Readiness Checklist
• LEI Readiness Check
• Bulk LEI Allocation Service
• Expert Support
• Training
• Programme Credit
Page 16
17. LSEG MiFID II Reporting Services
27 November 2015London Stock Exchange Group Page 17
Client /
Partner
Boat
UnaVista
Trade reporting
APA
(near real-time)
Transaction
Reporting ARM
(T+1)
NCAs
18. Two New Regulation Products
Page 18
EU Short-Selling:
• Covers Equity and Sovereign Debt positions in EU
• Automated, jurisdiction specific, short position
threshold monitoring
• Formatted private and public disclosures to
relevant Competent Authorities
EU+ Transparency Directive:
• Covers EU plus 9 adjacent economies (Switzerland, Russia,
Turkey, etc..)
• Automated monitoring of equity based long positions
• 4-eye disclosure workflow and ability to suppress jurisdiction-
country combinations
19. UnaVista Regulatory Reporting
Page 19
• Technology platform to support global reporting
needs
• Single, strategic reporting platform:
• Only TR proving EMIR TR and MiFID ARM services
• G20 reporting for multiple jurisdictions
• FTT, AIFMD, Short Selling, Transparency Directive,
M&A and others
• Provision of all reference data: ISIN, SEDOL,
LEI, eligibility, etc..
• Only future provider or EMIR, MiFIR and APA
services from one vendor
20. Jan
HKMA ->
2015 G20 Reporting Roadmap
Page 20
Jan 2015 Feb Mar Apr May Jun Jul Aug
MAS
DTCC Core, Singapore TR
HKMA, HKTR
ASIC
DTCC Core,, Singapore TR
MAS FX
ASIC 3A
MAS 1A
IR+CR
G20 GUI
All IR (NBA)
All FX (NBA)
Full/part termination
Withdrawal, Quit, Re-link, Supress, Uncertain
Equity
Equity Other
Sep Oct Nov
3A – Interest and Credit 3B – FX, Equities and Commodities
(changed to single sided for 3B entities
under 5B, where other side reports)
IR
CR
MAS + ASIC HKMAG20 v2
ASIC 3B
UV Releases
Delivery Timeline
Likely delayed
till Q3 2016
FX
FX Valuations
21. Jan
Use V2.2 or V3 depending on timing
Production
Production
2014/2015 AIFMD Roadmap
Page 21
Jan Feb Mar Apr MayJun Jul Aug Sep Oct Nov Dec
Reporting Go
Live
Product
Delivery
Jan. Reporting Clients 2, 3, 4 and others
Post Jan. Future Clients
Jan. Reporting Client 1
Charter Client UAT & Feedback
V 1.0
Production
V 2.0 V 2.1 V 3.0 to be scheduled
UAT
UAT
Solution Build and Refine
V 2.2
22. EMIR Level 2 Validations
London Stock Exchange Group
• Currently in UAT
• Reporting start date is late October 2015
Page 22
23. MI and Peer to Peer Analysis
• MI Reporting KPIs
• Submission Status
• Transaction Reports Received – By Source
• Transactions Per Hour Summary
• Report Status Split
• ARM Validation Exceptions
• Exception Trends
• Late Submissions
• Transaction by Venue
• Top 10 Counterparties and Clients
• Peer to Peer Comparisons
• Exceptions, Rejections and Late Reports
• ARM Exceptions Comparison
• Regulator Rejections Comparison
• Instrument Type Trading Capacity Breakdown Over
Reporting Comparison
• User Defined Thresholds
• Late reporting %
• Daily rejection %
• Buy/sell indicator ratio
• BIC/LEI vs Internal Code ratio
• Principal vs. Agent ratio
• Daily cancellation ratio
Page 23
24. UnaVista’s MAR Transaction
Surveillance
Data Analysed
If you already report to UnaVista as a MiFID Approved Reporting Mechanism,
UnaVista will leverage the data already provided to seek and detect potential
instances of suspicious transactions.
Types of suspicious transactions detectable by UnaVista:
Insider Trading (part of MAR 1.3):
• Based on price movement and trade profitability thresholds
• Weighted by asset class and duration open
Market Manipulation (part of MAR 1.6):
• Front Running - Based on Agent vs. Proprietary trade indicator
• Restricted List Analysis – Based on supplied list
• Parked Trades Analysis - By monitoring trading books
• Wash Trade Analysis - Based on trades of similar price
• Cancellation Analysis - Based on trade cancellation
All of which are major forms of market abuse prosecutable under both MAD
and MAR. UnaVista does not monitor for non-quantitative forms of market
abuse such as spreading misleading information, or non-compliance with
research disclosure and managerial disclosure requirements.
Page 24