Major Financial Institutions Choose Droit for MiFID II Trade Engine

Traders Magazine Online News, July 6, 2017

John D'Antona Jr.

Five of the world’s leading financial institutions have committed to using Droit Financial Technologies (“Droit”) as their choice for MiFID II trade compliance. The decision by BNP Paribas, Crédit Agricole CIB, Goldman Sachs, Lloyds and UBS represents a watershed in the industry search for a strategic solution in the run-up to the implementation of the new European regulations.

Droit currently provides enterprise infrastructure to 11 global financial institutions to facilitate compliant and optimal trading of derivatives and securities across all asset classes, all G20 aligned regulatory regimes, global CCPs and execution platforms.

“Droit is a central part of our eligibility architecture as we prepare for MiFID II, and we continue to enjoy a strong and collaborative working relationship with the Company,” said Jo Hannaford, Managing Director, Technology Division, Goldman Sachs.

Droit’s ADEPT platform generates the full global cross-regulatory implications and obligations of a trade in real-time. This enables institutions to implement a comprehensive approach to regulatory pre-trade decision making and accurate execution of pre- and post-trade obligations. MiFID II is the latest in the range of global regulations implemented in ADEPT.

“The complete digitalisation of capital markets pre- and post-trade processes is a considerable challenge for investment banks, as it requires a deep understanding of the regulatory texts and mastering the use of data, products and cutting-edge technologies. Droit and its ADEPT platform were a logical choice to accelerate the Information System transformation that Crédit Agricole CIB is undergoing to be MiFID II compliant. Our ultimate goal is to deliver an improved experience to our clients,” said Samy Beji, Global Head of Structuring and Deputy Sponsor FID II programme for Crédit Agricole CIB. 

ADEPT comprehensively supports eligibility and scope of obligation determination for the following MiFID II/MiFIR mandates:

• Pre-trade Transparency
• Suitability and Appropriateness
• Costs and Charges
• Firm Quote Obligation
• Best Execution
• Post-trade Transparency
• Transaction Reporting
• Commodity Position Reporting
• Venue Execution
• Order Record Keeping

“We take an agile approach to technology, working with leading external providers as well as developing digital solutions in-house, as part of our strategy to stay at the cutting-edge of digital global markets. Working with companies like Droit enables us to stay at the forefront of technological development, rapidly respond to changes in the industry and ultimately deliver the best outcomes to our clients,” said Cyril Cottu, Global Co-head of Electronic Market-Making and Commerce at BNP Paribas Global Markets.

“Transactional compliance requires the knowledge, maintenance and automation of extremely complex global rule systems,” said Satya Pemmaraju, Founding Partner and CEO of Droit. “Knowing who you can trade with, what you can trade and where you can trade is considerably more involved than even five years ago. These real-time, point-of-inquiry demands provide further challenges for a strategic infrastructure. Collaboration with our sophisticated client base has produced a mission-critical platform proven to meet these challenges for MiFID II, as well as other global regulations.”

Droit enables low latency decisions, integrating with front office e-trading and voice sales/trader workflows. Through a simple interface, the ADEPT platform has built-in traceability to fully digitised regulatory text, as well as complete, human-readable, auditability of every decision on every inquiry.

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