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Project Sentinel completes MiFID II technology specification

First Published 28th July 2016

Project Sentinel, the bank collaboration 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.

London and New York - Project Sentinel's collaborative approach enables market participants to pool their resources by investing in a standards-based, strategic MiFID II compliant technology solution that will automate the regulatory business processes for the front office.

The bank collaboration has 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. There are 2,700 permutations of interaction type / client types / trading models / venue types and instruments - these have been combined into 7 key workflows that need significant change.

The banks have also constructed a logical architecture that details the various components required and their interfaces with a typical bank infrastructure and finally a specifications document from which vendors will be able to understand the functional and non-functional requirements.

In addition, the consortium has updated the reference data model defined in Phase 1 to reflect further details issued by ESMA and also added the required reference data to support EMIR. This last piece was to demonstrate the flexibility and potential of the model to encompass other regulations.

All of the deliverables in Phases 1 and 2 were created in two blocks of seven weeks - using dedicated resource from Etrading Software and personnel from the 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.

Sentinel is now focused on assessing possible 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. 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 commoditized technologies are utilised.