Project Sentinel completes MiFID II technology specification, embarks on vendor search
Project Sentinel, a collaborative initiative by a group of banks to mutualise the cost of MiFID II implementation in the OTC front office, has completed the detailed business requirements that meet MiFID II regulatory obligations.
The project is now focused on finding the right vendors to deliver the solution. “Once the vendor assessment is complete, the banks will decide upon the final technical architecture and the implementation streams for the various components,” according to Sentinel’s project management office (PMO), Etrading Software.
“This will also include consideration of the buy versus build options and the interfaces into the banks’ existing trading platforms – ensuring that, wherever possible, standards and commoditised technologies are utilised.”
Achievements so far
“The banks have now defined a set of MiFID II compliant workflows. These articulate the detailed changes required for the trading-flow between the client, the sales person and the trader,” says Etrading.
“There are 2,700 permutations of interaction type/client types/trading models/venue types and instruments – these have been combined into seven key workflows that need significant change.”
The participating banks have also created “a logical architecture” that details the components and interfaces required and a specifications document for vendors to understand the functional and non-functional requirements.
Another development is an updated reference data model (to reflect further details issued by ESMA) and the addition of the reference data for EMIR. “This last piece was to demonstrate the flexibility and potential of the model to encompass other regulations,” Etrading says.
The above concludes phases one and two of Project Sentinel, completed in two blocks of seven weeks, with direct participation of Etrading and member banks.
“This collaboration has meant the banks can share the direct cost of ETS and the indirect one of additional internal resources to support MiFID II programmes,” Etrading states.
Stephane Malrait, global head of e-commerce for financial markets at ING Bank (a member of Project Sentinel), comments that the bank’s participation “helped on the creation of a workflow solution” at ING.
Other participating banks include Nordea and Santander.
UPDATE 19 September 2016: Etrading says two tech providers have now been shortlisted. Also, it says more banks have joined Project Sentinel, although no new names can be disclosed yet.