As the time comes to review your compliance solutions, you may be wondering what is involved in migrating to a different MIFID II transaction reporting platform. There are many reasons to consider migration, including a platform that generates more value and superior service. But barriers to switching, potential data changes, and data protection are understandably key concerns for those considering a change.
Here, we’ve compiled a range of FAQs that will tell you all you need to know about migrating to another provider – and how it’s actually easier than you think.
1. Why should I switch ARM in the first place?
There are many reasons you might want to switch your ARM, including:
- Improved data quality and data management processes
- Greater access to historic data for reconciliation, back reporting and internal monitoring
- Eliminating manual bottlenecks and tactical workarounds
- Accessing superior knowledge points and customer service for ongoing support; and
- Seeking a consolidated platform for multiple regulatory needs
Ultimately, you want to ensure that your firm is effectively meeting the regulatory requirements, with best-in-market technology, whilst achieving improved operational resilience.
2. How easy is it to migrate? What will happen to the existing data interface?
Switching your MiFID II transaction reporting is not as complex as you might think. A new data interface is not a necessity and the migration process is straightforward.
The firm’s existing data extract can be migrated as-is. This includes migration of existing interfaces from front-office platforms or migrating the in-situ extract currently being sent to another ARM. Or, should your firm wish to improve the quality of the existing extract, additional data validation and enrichment rules can be applied during the migration project to improve any deficiencies that may have been there in the past. AQMetrics hosts detailed planning workshops for data mapping and testing. Access to a test environment is provisioned to ensure your firm can run the new transaction reporting solution in parallel, prior to the live switchover.
AQMetrics hosts detailed planning workshops for data mapping and testing. Access to a test environment is provisioned to ensure your firm can run the new transaction reporting solution in parallel, prior to the live switchover.
3. How quickly can the migration be done?
Overall, the entire migration process can be done in as little as five days, depending on the size of the firm and the format of the data. AQMetrics has a dedicated customer success team to guide your firm through the entire process – from start to finish.
4. How can I protect my data if I do decide to change provider?
There are a couple of things to do in order to make sure that your data is protected.
i) First, make sure that information security is at the heart of their operating model. Your new provider should be well versed in this area, and understand your specific concerns.
ii) Second, ask if they’re ISO 27001 certified. The ISO is globally recognised, and provides specific requirements for an information security management system (ISMS), through more than a dozen standards that certificate holders have to uphold. This ensures your data is protected by an independently certified Information Security Management System (ISMS).
iii) Finally, make sure all data is encrypted in transit, and at rest. Natural person / PII data is protected using our Short Code Enrichment Service (SCEM). Your new reporting provider should be able to talk you through this, ensuring that your data is always protected
5. So, what sets AQMetrics platform for MiFID II transaction reporting apart from its competitors?
AQMetrics platform was built specifically for regulatory compliance, and the firm placed the regulatory requirements as the guiding principles on which the platform was created.
From the start, AQMetrics designed the MiFID II transaction reporting solution to automate the MiFIDII regulatory rules and ensure seamless integration of emerging regulatory change without any need for bespoke projects or consulting engagements. As a result, our clients spend less time dealing with exceptions and support and more time on the core functions of their jobs.
We also give firms unparalleled access to their own data, for back-reporting and reconciliation but also encourage them to use APIs to plug in their own business intelligence tools – it’s a complete platform approach. This data access can unlock a whole host of different insights and benefits, for the back, middle and front-offices.
Our platform rules builder means that data quality, risk and regulatory monitoring rules and ARM validations are co-located. This means you can take control of your data management and regulatory risk monitoring in one platform, integrating data from multiple source systems, and validating, reconciling and reporting on a daily basis.
Being an ARM, meanwhile, AQMetrics clients can connect directly with the regulator. This limits their vendor footprint, eliminating the need for multiple, siloed software solutions. But it can also reduce bottlenecks and delays when it comes to regulatory queries and interactions with the regulator.
6. What type of MiFID firms are using AQMetrics ARM for transaction reporting?
Being a software platform for multiple risk and regulatory requirements, in addition to an authorised ARM, AQMetrics has a range of MiFID firms as customers including tier 1 institutional investment managers, global proprietary trading firms, high-volume broker / dealers, and specialist investment firms.
When it comes to MiFID II investment firms, for example, AQMetrics allows them to streamline multiple compliance and risk tasks in a single platform. A one-stop platform and golden source of data gives them unrivalled control over all of their data and compliance operations.
Broker-dealers, with high trade volumes, can rapidly report millions of transaction reports daily through the AQMetrics platform, which serves some of the EU and UK’s largest brokers. Rule-based data management and APIs allows these firms to streamline data enrichment and feedback loops.
Large pension funds, government-backed asset managers and institutional investment managers all use AQMetrics platform to scale investment operations across multiple requirements. A platform that automates multiple compliance and reconciliation processes, with unrestricted, flexible access to data, generates value.
Here’s a snapshot of what our MiFID II clients say about our solution and the migration process:
Marlborough Asset Management: “The decision was an easy one. We asked a third party for advice on a MiFID II reporting platform and they recommended AQMetrics. It was a very smooth transition from there on, with the normal checks of technology and data.”
US Bank: “We saw a growing need from our clients for outsourced risk reporting. So we wanted to find the best technology firms that can provide that service – and that’s why we chose AQMetrics”
Mondrian: “We needed a new MiFID II transaction reporting solution and were immediately impressed by the AQMetrics platform. The transition and migration was easy and seamless too – saving a lot of time and effort.”
Kepler Cheuvreux SA: “Migrating is typically not an easy task, but with AQMetrics it was seamless. There are several vendors out there, and we carefully selected our new partner for their expertise and knowledge with regards to MiFID II migration projects.”