Cappitech has announced the launch of RTS 28 Market Intelligence, a product that the firm claims allows financial institutions to use regulatory compliance data to their own advantage by assessing firms’ best execution capabilities across all asset classes and benchmarks performance to the industry average.
The new product enables asset managers to optimise performance by monitoring their execution quality versus that of their peers and identifying areas for improvement. They can also discover the most popular execution venues, brokers and liquidity pools. Risk managers can identify areas of significant counterparty concentration; determine where execution quality may be compromised; and compare their performance against the industry average.
The MiFID II reporting standard RTS 28 requires all financial institutions operating in Europe to demonstrate their best execution practices by publishing reports annually listing their top five venues for trading on behalf of both professional and retail clients, across all asset classes. Cappitech says that while these reports are publicly available, they are notoriously hard to view and analyse since the datasets are large, exist in varying formats and are published on multiple websites.
“We are pleased to launch RTS 28 Market Intelligence in direct response to our customers’ concerns they were seeing little value from their regulatory reporting efforts,” says Ronen Kertis, CEO and founder of Cappitech. “The new product will enable financial institutions to improve their competitive advantage by extracting market intelligence from reported data with the simple click of a button. This will not only provide granular analysis of a firm’s performance versus that of its peers but will also bring greater transparency to the industry.”
Tim Cave, Equities Analyst at the Tabb Group, adds, “While the usefulness of MiFID II’s early RTS27 and RTS28 has been called into question, analysing them on an aggregate level could prove extremely valuable not only for best execution, but also from a competitor analysis and sales perspective.”