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Screenshot of a breaking news alert e-mail from Q2 2017
Financial services company TRAction Fintech has launched in the UK and Europe to assist brokers with reporting trades under the EMIR and MiFID legislation.
When asked how TRAction Fintech planned to differentiate themselves in the competitive UK marketplace Quinn Perrott, General Manager, responded:
There are 2 key areas where we think TRAction Fintech really distinguishes itself from other offerings in the market:
1. Pricing structure. TRAction Fintech is unique in having a monthly fee cap. It’s quite common in the UK for brokers to be subject to high trade reporting fees but with a reasonable yearly cap. In effect the brokers end up paying for a year’s worth of trade reporting in the first month and then get the subsequent 11 months for free. That’s why TRAction Fintech listened to the industry and got a sense of the frustration at being locked into a provider.
2. Service level and holistic understanding. The other thing that really sets us apart is our holistic approach AND specialisation. There are plenty of companies out there that can provide trade reporting software or provide consulting on how to set things up. However there are a very select few who take on the whole puzzle, end to end, as their core business, like TRAction Fintech do.”
Sophie Gerber added:
With MiFID 2 just around the corner we believe we’ve entered the UK market at the right time when most brokers will be re-evaluating their trade reporting setups. We’ve also found that even as we come up to the 3 year anniversary of the EMIR reporting start date there is still a fair amount of confusion in the market place. Here are 2 key examples we’ve come across:
1. Brokers assuming FX isn’t reportable under EMIR due to the spot FX exemption – FX derivatives (like that generally traded on MT4 or similar platforms) often do have their underlying price feed from spot FX. However they aren’t exempt as they don’t ‘settle’ and don’t meet the ‘commercial purposes’ test.
2. Spread betting not being reportable because it’s gambling. -Yes, spread betting is gambling but it’s also a reportable OTC derivative if it is based on a reportable financial product. Basically if it’s reportable as a CFD it’s also reportable as a spread bet.