1. MiFID II - What’s left to do?

2. Six Stages of MiFID II Implementation
For each workstream …
Denial
Trying to avoid the inevitable
Anger
Frustrating outpouring of bottled-up emotion
Bargaining
Seeking in vain for a way out
Depression
Final realisation of the inevitable
Testing
Seeking realistic solutions
Acceptance
Finally finding the way forward

3. A Long Way to Go … and a Short Time to Get There
Practical Challenges
Regulatory Uncertainty
Client Outreach
Realistic Timelines & Triage

4. Regulatory Uncertainty
No clarity from regulators on open issues
At the point of having to take a position
E.g., ‘Costs and Charges’
Multiple interpretations

5. Change of Behavior; Policy
Client Outreach
Progress Status – September 2017?
Challenges:
High volume of queries
Challenges to classification
Client response speed (for key information)
Document Type
Type of Communication
One / Two way
LEI requirement
Notification; Policy
One-way
Terms of Business repapering
Policy
Client Classification refresh
Change of Behavior; Policy
Best Execution Summary
Best Execution Consent
Two-way
Disclosure Consent
Mandatory Clearing Obligation
Research Unbundling
Algorithmic Trading
Assisted Reporting

6. Realistic Timelines … and Triage
2017
Triage book of work (by products and volumes) (80%)
Post 3rd January 2018
Three Streams:
MiFID II Implementation (20%)
MiFID II BAU
Other Regulatory Regimes (e.g., GDPR)

7. Real Time Requirements
MiFID II technology considerations
Data
Consolidation
Connectivity
Rules Engines
Output Modules
Real Time Requirements
Change is the constant
Audit Alerts &
Workflow

8. Kx Technology applied to MiFID II
4. VISUALISATION
A rich visualisation layer then offers configurable HTML5 dashboards that provide powerful BI and reporting capabilities
3. BUSINESS LOGIC
Sample Modules
SI Determination
TCA
Best Execution
MAR/Surveillance
In the business logic layer applications can consume enterprise-certified data. The platform is designed to bolt on modular components of code written in response to regulatory demand.
2. THE PLATFORM
This layer includes functionality to abstract the end user from the vagaries of data differences. Data filtering can be managed through simple configuration without downstream applications having to resort to code to implement the cleansing routines they need.
API
Access
API
Access
1. DATA MANAGEMENT
The platform fuses data from multiple sources is ingested in real time or historical. Data is validated, normalized and stored.
Market /Ref Data
Orders & Executions
e-Comm data, Manual Entry.
Proprietary system feeds

9. Architecture Kx for DaaS Financial Market Solutions
Scalability: [Horizontal/Vertical] . Redundancy: Hot-Hot. Use Case Separation & Sandboxing
Native Lambda/HTAP Architecture
Analyst for Kx
Kx for DaaS
Adhoc import,
transform, query
and explore without
programming
Core
File & DB Sources
Batch
Loader
Stream Engine
Ticker Plant
Realtime Engine
In Memory Data
Queries (Request / Reply)
Streaming
Event-triggered
In Memory
Database
Financial Market Solutions
Transaction Cost Analysis
Dashboards for Kx
Best Execution Reporting
Real-Time
Sources
Stream Feed Handler
Historical
Database
Build real-time
visualizations for multiple devices
Mifid II RTS Reports
q language & scripting
Third-Party Interoperability
pub/sub, web services, change data capture,…
R, Python, Matlab, Java, ODBC, web sockets…
Kx for Surveillance
API’s for Kx
Native kdb API’s.
Direct IPC and binary communication for HPC
Kx for DaaS
DaaS Admin Server
Monitor for Kx
Develop, configure, deploy and manage solutions:
Authentication, subscription, connections, users, settings, permission, configuration.
Scan, monitor and alerting of issues in software and hardware

10. 3. BEST EXECUTION REPORTING
Mifid II – On track?
1 .BEST EXECUTION
POLICY
5. PRE/POST
TRADE TRANSPARENCY
2 .BEST EXECUTION
MONITORING
MIFID
4. SI DETERMINATION
3. BEST EXECUTION REPORTING
RTS 27/28

11. Best Execution – Key Actions
BENCHMARKS
DEFINE BEST EX POLICY
MARKET DATA
SOURCE FEEDHANDLERS
ORDERS & EXECUTION DATA
SOURCE OMS/EMS SYSTEMS
PLATFORM
SYSTEM UPGRADE/INSTALL/ADMIN
DATA INTEGRATION
ANALYSIS & REPORTING
JAN 2018

12. Building Solutions Using Kx - Mifid II Reporting
Solutions To Meet an Industry Demand!
We have a full suite of RTS components
Examples include
Data Management
Trade and Transaction reporting engines
Order Book Reconstruction
Transaction Cost Analysis
Systematic Internaliser
RTS 27 & RTS 28 Reports
EBBO
Position Limit Monitoring for Commodities

13. RTS 27 & 28 Reporting