SteelEye releases auto-trade reconstruction technology

The new auto-trade reconstruction technology from SteelEye will reduce the time taken to reconstruct a trade from days to seconds.

Compliance technology firm SteelEye has released auto-trade reconstruction technology which the firm claims can minimise the time taken for a firm to reconstruct a trade down to seconds.

SteelEye said in a statement that the new technology was designed to help market participants keep up with the demands for ‘reconstruction’ of trades under the MiFID II regulation.

Under MiFID II, market participants could be required to reproduce all records relating to a client order or trade including transaction/order details, correspondence, and meeting minutes. This process of ‘reconstruction’ can take up to 72 hours, SteelEye added.

“The requirement to reconstruct all the conditions surrounding a trade or order requires firms to identify, locate, and bring together a wide range of information, quickly,” said chief product officer at SteelEye, Matt Storey. “With many firms professing that such a request would take them over two weeks to complete, this has been an area bringing a lot of worry and stress to compliance teams.”

The new technology produced by SteelEye deploys artificial intelligence (AI) and machine learning (ML) to capture the required information across all asset classes within a single platform in order to shrink the processing time down to seconds.

The system’s AI capabilities also mean that as it rejects or accepts information relating to a particular trade, it can learn as it goes along to then improve its reconstruction abilities each time.

The latest launch at SteelEye follows the firm’s move to partner with consultancy firm Margin Reform to offer compliance and regulatory reporting solutions, following reporting service shutdowns at CME and Deutsche Börse. The partnership gave Margin Reform access to SteelEye’s RegTech and reporting suite in a bid to address the challenges of an evolving regulatory landscape.