MiFID II solutions for the Sales Trader Workflow

Solutions / Regulation / MiFID II

MiFID II solutions for the Sales Trader Workflow

Inquiry capture and reporting

MiFID II has introduced new real-time reporting obligations to the sales trader workflow.

Capturing and recording all methods of communication surrounding price negotiation can be a daunting task – and Bloomberg’s got you covered.

With its vast community and technological expertise, Bloomberg is uniquely positioned to provide front- to back-office solutions for inquiry capture, trade transparency and transaction reporting – no matter what system you are using.

We’ve developed solutions to meet the broad range of needs of our customers based on their scale and internal system sophistication, while providing the connectivity to the chat activity of a firm’s salespeople and clients in Instant Bloomberg (IB).

The Bloomberg STW solutions

Bloomberg’s Sales Trader Workflow (STW) solutions can encompass the entire sales process of client order capture, pre-trade compliance, quoting, negotiation and order routing to external third-party electronic trading platforms. As mandated by the European Securities and Markets Authority (ESMA), Systematic Internalizers (SI) will be required to publish quotes on most types of orders. Bloomberg’s Sales Trader Workflow solutions feature the tools for a salesperson to automatically publish quotes to the Approved Publication Arrangement (APA) via Bloomberg’s Regulatory Reporting Hub (RHUB), and capture for auditing all electronic negotiation between the salesperson and the trading desk.

STW via Bloomberg Trade Order Management Solutions (TOMS)

For firms seeking a complete sales trader workflow solution, which is also MiFID II compliant, we manage the end-to-end process via Bloomberg Trade Order Management Solutions (TOMS) – with no additional technology implementation required.

TOMS allows the salesperson to capture and send client inquiries to their trader, negotiate with the trader and respond to the client, all within a unified and structured Bloomberg workflow for all parties — while facilitating the capture of all necessary timestamps to satisfy pre-trade transparency requirements via the Bloomberg APA.

In addition, TOMS provides a strategic enterprise workflow across the entire trade life cycle with seamless integration via Bloomberg’s Regulatory Reporting Hub (RHUB) for transaction reporting to Bloomberg’s Approved Reporting Mechanism (ARM), Bloomberg’s Transaction Cost Analysis tool (BTCA) for best execution, and Bloomberg Vault for record keeping, trade reconstruction and surveillance.

TOMS can also be used in conjunction with a firm’s own internal or third-party execution management system (EMS) using Bloomberg’s Trade Negotiation Protocol (TNP). In this case, the client can send the final executed trade into TOMS, which then seamlessly feeds into RHUB on a post-trade basis.

STW via Trade Negotiation Protocol (TNP)

Firms that use their own internal or third-party OMS, but want to leverage Bloomberg’s workflow and connectivity to IB, can integrate Bloomberg’s Sales Trader Workflow solutions with their OMS with minimal new technology implementation required. This solution uses Bloomberg’s TNP to drive greater collaboration and efficiency across the trading desk while complying with MiFID II pre- and post-trade transparency requirements around voice capture.

The TNP connectivity allows a salesperson to capture key IB interactions and negotiate with their trader within a unified and structured Bloomberg workflow even though the trader and pricing engine are on an external system. Then, confirmation exceptions and confirmation statuses can be managed through the Bloomberg Terminal® or STP Portal.

STW via Instant Bloomberg (IB) API

Firms that want to use an internal or third-party OMS as well as an internal or third-party STW can nourish those workflows with our IB API integration. This service allows salespeople to capture key inquiry information from IB and send it, along with relevant metadata, directly to their internal system. Responses from the system can then be staged within the firm’s internal workflow and posted by the salesperson back into the chat from which the inquiry originated. In addition, a user can create or capture an inquiry within IB using Bloomberg’s interactive security link, or pill. This service is designed to assist with MiFID compliance; however, timestamp storage and other reporting requirements are the responsibility of the firm.