Market data management software vendor Arcontech has released an application which it says will help banks and brokers with their best-execution obligations under MiFID by allowing users to check the prices of equities across European execution venues to ensure they remain in line with their best execution policy.
The application, called EuroVision, is a new development by Arcontech, using existing technology to empoer the user rather than simply providing low-latency data feed technology.
“Arcontech’s CityVision suite can help investment firms, data aggregators, data distributors and service providers achieve compliance in the three relevant areas of MiFID: pre-trade quotes, post-trade reporting and best execution,” says Andrew Miller, Arcontech’s Managing Director. ““Best Execution is a key obligation of MiFID, with the requirement that firms must achieve the best result for their clients, consistent with their execution policy. Our application gives them visibility, not only on those venues where they currently deal, but also across Europe on those that they may wish to consider. We already have one client for the application and anticipate considerable demand.”
EuroVision takes data from multiple exchanges, MTFs (Multilateral Trading facilities) and SIs (Systematic Internalisers), builds the order books and depth of market data and then combines the books to produce real-time European Best Bid/Offer (EBBO) displays, in-line with a particular bank’s or broker’s execution policy.
Arcontech claims the application is unlimited in terms of the numbers and classes of instruments it can process. It can also supply web browsers, Excel spreadsheets and direct low-latency feeds to third party systems. In combination with other value added applications in the range, such as our arbitrage alerter and trades-by-market displays, Eurovision aims to help both the buy and sell sides of the market.
“Our EuroVision application is particularly powerful since it will monitor any number of exchanges, MTFs and SIs,” explains Miller. “The CityVision aggregator announced last year takes care of data acquisition from multiple sources in different protocols and normalisation to a standard symbology such as ISIN. Utilisation of our user authentication and entitlements system means that users will be able to see data from the venues that are currently relevant to their needs. For example, traders will want to see the EBBO for the venues within their firm’s current policy, whereas those responsible for policy can be given greater permission to review other liquidity pools, assess their suitability and instigate policy change where appropriate.This is important since with the new regime of price transparency, clients will be aware of the best prices in the market and are likely to vote with their feet if their intermediary’s policy does not give them access to those markets.”