NEX : Regulatory Reporting Launches Short Code Identity Service ‘ISCI’

London - NEX Regulatory Reporting announces today that during the rollout of MiFID II, it successfully launched its short code identifier service the 'Industry Standard Common Identifier' ('ISCI') to help market participants meet their MiFID II requirements while simultaneously protecting the data of individuals.

Under MiFID II, market participants are obligated to include the personal data of the decision maker and/or client responsible for the execution of the transaction in their reports so they can be identified by the regulator. They must also ensure the provision and storage of sensitive natural persons' data is done in a secure and effective manner. ISCI enables firms to manage these requirements while also meeting future GDPR requirements (from 25 May 2018) which dictate that personal data should be kept in an identifiable format for no longer than necessary and be anonymised if retained.

ISCI is a venue- agnostic, highly encrypted service where personal identifier information (PII) can be uploaded either via the HTML 5 interface or over SFTP connection allowing for integration with internal HR or middle office systems. The inputted data is validated against ESMA standards as part of the upload process to ensure compliance. ISCI protects PII data (required by RTS 22) until the last point of the process before a transaction is enriched with decision maker detail. Alternatively, if firms are subject to the MiFID II obligation to maintain order records (required by RTS 24) information is held securely until order records are required to be presented to the regulator.

Personal data is stored in an encrypted 'vault' and data protection is guaranteed through the highest levels of security available including AWS Key Management Services for encryption and Okta-provided multifactor authentication. Access to data is granted on a 'need to know' and 'least privilege' basis, is monitored, and fully auditable.

In preparation for MiFID II, approximately 140,000 individual short codes (traders and algorithms) representing 2,140 individual LEIs (firms) were uploaded to ISCI from member firms, for the purposes of transaction reporting and order record keeping. Firms benefit both from a significant reduction of the workload required to provide and update data to multiple sources, and the need to continually reconcile against their internal systems as people join or leave their organisations.

Collin Coleman, Head of NEX Regulatory Reporting, said: 'Providing a secure data repository for personal information that can be used by the entire market will reduce the data management and storage costs for all involved and ensure that the data has been validated to meet all regulatory standards. We're also enhancing data protection by investing in highly sophisticated data security.'

Julien Lee, Head of Architecture, TP ICAP, said: 'MiFID II is big enough challenge for firms without the introduction of GDPR. By connecting to ISCI, we have not only future-proofed our MiFID II solution against the upcoming regulation, but those of our member firms as well.'

CONTACTS
Bryony Scragg, NEX
+44 (0) 20 7818 9689
bryony.scragg@nex.com
Casey Sheets, NEX (US)
+1 917 246 2088
casey.sheets@nex.com
Michelle Gathercole, Argentus PR
+44 (0) 20 7397 2949
michelle.gathercole@argentuspr.com

NEX REGULATORY REPORTING operates within NEX Optimisation, which helps clients simplify complexity and optimise resources. NEX Regulatory Reporting includes Abide Financial and Abide Financial DRSP, an FCA regulated entity. The platform introduces cost efficiencies, mitigates operational risk and provides regulatory reporting effectiveness. Through its multi-regime reporting hub, regulatory obligations are translated into future proof compliant solutions while its specialist advisory teams interpret the impact of evolving markets regulation relating to trade and transaction reporting. In addition to European regulatory environments (EMIR, MiFID/II, SFTR, REMIT), NEX Regulatory Reporting provides specialised reporting services for entities subject to international regulatory regimes such as Dodd-Frank, ASIC (Australia) and MAS (Singapore).

For more information, go to www.nexregulatoryreporting.com

NEX offers clients better ways to execute trades and manage risk. Our products and services underpin the entire trade lifecycle pre-, during and post-execution. Our electronic trading platforms are industry standards. Clients use our lifecycle management and information services to optimise portfolios, control risk and reduce costs. We partner with emerging technology companies to bring greater efficiency, transparency and scale to the world's capital markets. NEX is headquartered in London with offices around the world. For more information, go to www.nex.com