MiFID II

Digiterre worked closely with Man Group PLC to develop and implement the ‘MOLE’ platform, which was designed to address the MiFID II regulatory requirements in advance of the Jan 2018 deadline while further strengthening Man Group’s competitive advantage by creating an extremely high quality data stream, from which real-time analytics can be performed, to further enhance the trading and operational effectiveness of the firm.

Project goals

Project goals

The main goals for the project were to:

 

—Meet the regulatory and reporting obligations of MiFID II for financial organisations, ahead of the January 2018 deadline set by the FCA.

—Build an internal solution for trade real-time data collection, viewing, analysis and reporting across the whole of Man Group.

—Expand the data set available to the front office quant teams relating to analysis of trade allocations and Total Cost Analysis, with a view to further improving trading performance.

—Create a platform to support Man Group’s strategic growth objectives; specifically to enable acquired and organically grown new businesses to plug-in to the platform at low cost and to then leverage the new regulatory reporting and data analytics functionality.

Technical Approach

Technical Approach

The core approach involved:

 

—Enabling businesses across the whole of Man Group to publish their trading activity via a central data streaming system that tracks and ‘listens’ to all published trading & lifecycle events, both now and in the future.

—A solution that can capture, analyse, enrich, transform and store trading data from across all the Group’s business units in low latency timeframes and in a scalable manner.

 

The technical approach included:

 

—A highly scalable Kafka messaging system , enriching and modelling of data for reporting with an Akka.NET framework.

—Extend adoption of the MongoDB document database within the Man Group, to capture activity from across the different businesses.

—Building an HTML 5 front-end user interface on a React JavaScript presentation framework to enable real-time analytics on streamed data.

Benefits of the Solution

Benefits of the Solution

The key benefits of the solution were:

 

—The regulatory and reporting requirements of MiFID II were satisfied in full and well in advance of the January 2018 deadline.

—Data flows can be analysed in real-time with a central view across multiple trading entities, to satisfy both current and potential future regulatory requirements.

—The business can grow in the knowledge that the system can handle far higher volumes of trade data than are currently being generated; this effectively future-proofs the business in scale terms.

—The design and architecture of MOLE accommodates the near-term requirements, which include the MiFID II reporting needs and has the built-in flexibility to handle trade data collection and analysis needs that are likely to be important in future.

—Data-related strategic opportunities have opened-up for the Group, thereby supporting its trading activities in this highly competitive sector.

The benefits of collaborating with Digiterre

The benefits of collaborating with Digiterre

The key benefits for Man, of collaborating with Digiterre on the MOLE project include:

 

—The ability to introduce new technologies rapidly and effectively, to the Man technical environment.

—Expediting the proof of concept phase to trial and prove the technology stack ahead of productionisation.

—Extensive experience in building rich HTML 5 user interfaces combined with strong UX capabilities.

—A proven track record in delivering web-based, event-listening and Big Data projects and in messaging systems designed to handle large volumes of real-time data.

—Experience gained from developing and implementing ground-breaking and innovative trading, risk and RegTech solutions across the banking, asset management, and commodity-trading sectors.

The key elements of the project’s success

The key elements of the project’s success

—Taking a pragmatic approach to Agile delivery and working very closely with the Man Group technical team to develop a finished, high quality product on a collaborative basis within extremely demanding timescales.

—Extensive Digiterre track-record and experience of the main technologies used in the build, thereby complementing the technology skills already in evidence within the Man Group.

—The deployment of software patterns and development approaches designed to achieve continuous improvement to challenge the team to exceed the demands of business users.

—The implementation of advanced test automation designed to maximise both the quality of the final outcome and developer productivity throughout the Software Development Lifecycle.

The Platform of the Future

The Platform of the Future

“Having spent much our time and technology budget since 2009, addressing regulatory matters, we recognised as early as 2015 the full magnitude of the changes being proposed by the MiFiD II legislation and so asked ourselves the question ‘How can we turn this regulatory necessity into a source of strategic advantage for the entire Man Group?’ The MOLE platform, which went live three months ahead of the January 2018 deadline, is our answer to that question and is already proving itself to be the ‘platform of the future’ within the Man Group data analytics estate. Digiterre were pivotal in bringing MOLE into existence and were chosen after an extensive and rigorous vendor selection process, because of their long track record of delivering cutting-edge financial markets technology solutions that work – using a pragmatic Agile approach coupled with test automation – to deliver an extremely high quality solution, often under very tight timescales”
—Lee Tindell, CTO, Man Group PLC