Reg NMS, Best Execution & MiFID
The world capital markets are in the midst of significant regulatory change. Reg NMS and MiFID are deemed among the most profound changes global capital markets has seen in nearly 30 years. In fact, analyst firm Aite Group estimates that within the U.S. alone, $544 million will be spent over the next four years on IT projects to ensure that all market participants comply with Reg NMS.
This means that virtually every exchange and trading center is considering how to revamp its operations to improve speed and reliability amidst a general transition to 'fast markets' and electronic trading. Business models and trading rules are being reconsidered and new technologies (such as StreamBase's high-performance Complex Event Processing platform) are being widely implemented for speed and compliance. Keen attention is being paid to a world where 'best execution' de facto means 'best price,' and how orders may have to be 'smart routed' to other trading centers for fulfillment.
Reg NMS implementations require a highly choreographed exchange of real-time data. Price quotes need to be time-stamped and quickly distributed to all other market venues. Trading centers are expected to automatically respond to in-coming market orders within a second and quickly report both trades and updated 'top of the order book' bid/ask quotes. As a result, when Reg NMS is fully implemented, real-time message traffic between trading centers will sharply increase yet further. The likely forthcoming introduction of decimal pricing for equity options is expected to even more strain existing technology infrastructure as real-time message traffic with indicative bid/ask market data balloons several fold.
If your Reg NMS and MiFID strategies includes how to optimally track, manage, analyze, and store the dramatic increase in the volume and velocity of real-time and historical tick and market data, then you need StreamBase.
Capital markets firms that leverage StreamBase for supporting their Reg NMS and MiFID initiatives get:
- A scalable, enterprise-class platform proven to handle high-volume, high-velocity tick and market data
- Unlimited storage capacity for both real-time and historical market data, orders and executed trade data
- Ability to process and analyze multiple, disparate market feeds and streaming data for enabling best trade execution and smart order routing
- Fast development of Reg NMS and MiFID applications for pre-trade testing
Learn More: Capital Markets Whitepapers
After you click any of the following links, please complete the Knowledge Center registration form. Once registered, you can access the documents directly.