EXTENT-2017: Software Testing & Trading Technology Trends Conference 29 June, 2017, 10 Paternoster Square, London MiFID II and Impacts on Trading Workflow Ferdinando La Posta, Co-founder & CEO, GATElab Would like to know more? Visit our website: extentconf.com Follow us: https://www.linkedin.com/company/exactpro-systems-llc?trk=biz-companies-cym https://twitter.com/exactpro #extentconf #exactpro

1. MiFID II and impacts
on trading workflow
EXTENT June 2017 V1.0
Page 1

2. Page 2
Price
Discovery and
Best Execution
Trade Costs
and Liquidity
Analysis
Benchmarking
& Analytics
Pre-Trade
Transparency
Execution
Post-Trade
Transparency
New paradigm in trading flow
RM &
MTF
OTF
OTC
execution
SI
if you have
• a good trading desk with quantitative,
qualitative and holistic capabilities,
• a powerful best execution process,
• an unbundled research-execution cost,
• a good feedback from performance control,
• a good centralized regulatory hub,
nothing has to be done
for MiFID II

3. Page 3
Price
Discovery and
Best Execution
Trade Costs
and Liquidity
Analysis
Benchmarking
& Analytics
Pre-Trade
Transparency
Execution
Post-Trade
Transparency
Capture, Discover & Analyze
What you need to capture:
• huge amount of data, coming from different
types of external or internal sources (i.e.
feedbacks from previous steps);
To do what:
• to support the discovery process of the best price
per each instrument;
• to analyze discovered liquidity and hence to
understand the cost of a trade;
• to feed relevant information to the next steps
With which challenges:
• handling good real-time & snapshot structured
& unstructured data;
• putting in place good strategies & analytics to
evaluate.
RM &
MTF
OTF
OTC
execution
SI

4. Page 4
Price
Discovery and
Best Execution
Trade Costs
and Liquidity
Analysis
Benchmarking
& Analytics
Pre-Trade
Transparency
Execution
Post-Trade
Transparency
Validation & Pre-Trade
What you need to capture:
• huge amount of data, coming from different
types of external or internal sources (i.e.
feedbacks from previous steps);
To do what:
• to validate discovered/defined prices and liquidity
against related benchmarks and assess their
impact on internal risk;
• to spread defined and verified prices
• to feed relevant information to the next steps
With which challenges:
• handling good real-time & snapshot structured
& unstructured data
• putting in place good strategies & analytics to
evaluate
RM &
MTF
OTF
OTC
execution
SI

5. Page 5
Price
Discovery and
Best Execution
Trade Costs
and Liquidity
Analysis
Benchmarking
& Analytics
Pre-Trade
Transparency
Execution
Post-Trade
Transparency
Execution & Post-Trade
What you need to capture:
• internal sources (i.e. feedbacks from previous
steps);
To do what:
• to execute trades and evaluate their impact;
• to spread trades to APAs, ARMs and CTPs;
• to feed relevant information to the next steps
• to reconstruct trades & capture sales workflow
With which challenges:
• handling good real-time & snapshot structured
& unstructured data
• putting in place good strategies & analytics to
evaluate
RM &
MTF
OTF
OTC
execution
SI

6. Price
Discovery and
Best
Execution
Trade Costs
and Liquidity
Analysis
Benchmarking
& Analytics
Pre-Trade
Transparency
Execution
Post-Trade
Transparency
Winning points to tame MiFID II
Data Management Platform for
• handling structured and unstructured data
• easy configurable rules for quality and enrichment
• handling not only MD, but also voice as a text, mail, unstructured text,
news with AI support (sentiment analysis)
• easy programmatic and enriched UX (with chatbots) interfaces
Strategy and Analytics for
• liquidity discovery and analysis, pricing with Adjoint Algorithmic
Differentiation and AI support (machine learning and deep learning)
• transaction cost analysis and benchmarking
• risk, margin and portfolio optimization
Page 6
RM &
MTF
OTF
OTC
execution
SI

7. Client
Realtime
Data Lake
DataQualityandAggregation
On Demand
Trade
Reconstruction
Email
Voice
Documents
PreTrade
Markets
Trading
Platforms
ExecutionPost-Trade
Clearing &
Reporting
Clients
Client
Reporting
Surveillance &
Alerting
TCA Analysis
Transaction
Reporting
Post-Trade
Transparency
ARMs
APAs
Snapshot
Sales
Traders
Validation &
Enrichment
Data Sourcing
Aggregation and
Storage
Calculation and
Data Services
Monitoring and
Oversight
Client & Front
Office Access
Reporting &
Submission
Internal
Analytics
GATElab for MiFID II platform
Customer/Third
Party Analytics
Page 7

8. Regulatory Hub
Centralize data from different data sources for different asset classes to implement a
MIFID II-compliant data lake. Avoid costs for adapting to multiple trading systems
Capture and combine different types of events in different forms: from structured electronic
messaging (e.g. FIX Protocols) to Email, Documents and Voice trading systems
Monitor all trading flow executions – historical or intraday - in conjunction with real-time market
data. Open access to Front Office, Sales, Clients and Compliance users
View all of the quote, order & trade flows in real-time for all of your connected platforms, bridge
the gap among your trading platforms.
Single Straight Through Processing channel from front office trading platform and execution
venues to post-trade platforms (Transaction Reporting, Post-Trade Transparency, …)
Insert and keep track of Voice Orders in compliance with MIFID II focusing on
derivatives/structured businessVoice Workflow
Unstructured Data
Compliance
Monitoring
Trading Performance
Trading performance analytics shows the quality of execution performance relating to a variety
of benchmarks (e.g. Arrival Price).
Real-Time
Global View
STP Feed
Page 8
GATElab for MiFID II platform: key points

9. Trading+Algo
Platform
SOR
Platform
Listed Instruments
OTC
Platform
Cleared Trades
Bank Systems
Broker Trades
Email Voice Documents
TradeEvents
Compliance
TCA Analysis
Trade
Reconstruction
Client
Compliance
Client
Regulators
Transaction
Reporting
Trade
Reconstruction
Reports
Client
Clients
Client
FO
Admin
Configure
Surveillance
Surveillance
Compliance
Post-Trade
Transparency
Clients
Sales
Voice
Recorder
ARMs
APAs
Page 9
How GATElab can help
GATElab
Market Data Management
& Analytic Platform

10. Many thanks!
GATElab
10 Paternoster
Square,
EC4M 7LS
London (UK)
sales@gatelab.com