SimCorp Adds New Tools for Mifid II Trade and Transaction Reporting

The vendor has expanded its offering by adding front-office workflows to establish automated transaction reporting.

Marc Schroter, head of product management at SimCorp, tells WatersTechnology that the new workflows automate the determination of relevant data to support the transaction reporting requirements.  

“New workflows also support institutional investors with reporting requirements of individual executions, as mandated by Mifir,” he says. 

He explains that with these enhancements, users can proceed to automated reporting without having to migrate their trades to SimCorp’s order management system (OMS), as the trade data can be feed into third-party OMSs. 

For the trade reporting requirements, the updated Dimension features a FIX-based connector for the firm’s OMS. It has also added trading venues to the interface, giving users full access to the information they need for record-keeping. 

The new version includes a new pricing model that improves valuation and risk calculations of vanilla options such foreign exchange (FX) and equity. 

Users will also see a dashboard with collateral positions data, which can be disseminated throughout the firm, from risk managers to front-office staff. 

For German investment funds, SimCorp has built the “Steuer Reform Gesetz” module, which allows users to comply with the upcoming investment tax act, in which all funds available to the public will be subjected to a 25 percent tax.  

“Many of the new additions are based on specific requests from our clients,” Schroter says. “Much of the new functionality caters to new regulations and to establishing new automated processes to increase efficiency.”

He says that a month after Mifid II comes into force, SimCorp will release another version, in which the OMS will be enhanced to align with emerging best practices around commission unbundling and workflows for best execution.