TraderServe has been added to Colt PrizmNet, a financial services extranet connecting providers of financial content to Capital Markets firms. TraderServe will provide access to Algoguard – a validation engine for MiFID II compliance – via PrizmNet from next month.
The service will be available to all Capital Markets participants who require the ability to demonstrate compliance for algorithm testing under MiFID II, irrespective of location.
Nick Idelson (pictured) of TraderServe, says: “The timing of delivery of Colt’s new extranet – Colt PrizmNet – is ideal in light of the requirements for testing that MiFID II brings and the timescales that go with those. Capital Markets firms will be able to directly access Algoguard and deliver their new regulatory obligations without any need for expensive and time-consuming builds. The obligation has long been known about, and whilst we await the release of the technical standards, firms should be preparing for this now.”
Algoguard allows capital markets participants to perform algorithm testing to comply with the requirements of MiFID II. The testing takes place in a realistic environment which responds dynamically to algorithms under test, based on statistical sampling of selected historical data with demonstrable independence and reporting. This can be used for the required testing following any significant change to the algorithm as well as the mandatory annual testing – without disclosure of the participant's IP.
TraderServe will also offer Arena, a non-live testing service for trading venues that is isolated from live trading, and which includes disorderly market testing and stress testing in addition to existing conformance tests. TraderServe is currently working with trading venues to provide a testing platform for their members and participants, which will also be delivered via Colt PrizmNet. This platform will allow them to meet their new testing responsibilities.
“We’re pleased to welcome TraderServe to PrizmNet,” says Hugh Cumberland, solution manager for capital markets at Colt Technology Services. “TraderServe’s presence enhances PrizmNet’s value to Capital Markets firms internationally, as a means to become MiFID II compliant well in advance of the looming deadline. There are many different activities that will be imposed on firms using algorithms in their trading strategy. Anything that can help lighten the development overhead for our customers, especially in the coming 18 months, will be very welcome.”
Colt PrizmNet delivers market data, software and services via a single online portal, at guaranteed deterministic low latencies. TraderServe joins Aquis Exchange, JPX, Nasdaq and NLX, amongst others, as service providers on Colt’s PrizmNet extranet.
