NPL, the UK's National Measurement Institute, is expanding its precise timing service, NPLTime, through a distribution agreement with QuantHouse, the provider of trading and infrastructure solutions and market data services.
NPLTime provides a precise time signal delivered over fibre, traceable to Coordinated Universal Time (UTC), accurate to within 1 microsecond. The agreement will provide QuantHouse customers with the capability for traceable timestamping, latency monitoring and synchronisation. It also enables compliance with MiFID II timestamping requirements, and can reduce reliance on GPS, removing susceptibility to jamming, spoofing, urban canyon effects and space weather.
The adoption of automated trading throughout the industry has increased the need for synchronisation of trading systems and traceability to Coordinated Universal Time (UTC). The agreement comes ahead of the implementation of the European Securities and Markets Authority (ESMA) update to the Markets in Financial Instruments Directive (MiFID II), which will require financial organisations to achieve up to 100 microsecond level traceability of trading events by January 2018.
QuantHouse clients will now be able to evidence the exact moment a trade was executed, providing an audit trail for both internal analysis and regulatory reporting. Accurate time stamping of trades supports activities such as TCA (transaction cost analysis) necessary to improve execution performance, MiFID II compliance towards best execution and market surveillance, all reliant upon an accurate timeline of events to carry out further analytics.