The MAR and MiFiD II regulations have broad ramifications across a variety of key capital markets business functions across the front, mid and back offices. These include compliance, compensation policies, regulatory reporting, trade surveillance etc. However, the biggest obstacles are related to technology as we will examine below.
Some of the key business requirements that can be distilled from a perusal of the regulatory mandates include the below:
The ability perform deep & multi level analysis of trade activity implies the capability of not only storing heterogeneous data for years in one place as well as the ability to perform forensic analytics (Rules & Machine Learning) in place at very low latency. Querying functionality ranging from interactive (SQL like) needs to be supported as well as an ability to perform deep forensics on the data via Data Science. Further, the ability to perform quick & effective investigation of suspicious trader behavior also requires compliance teams to access and visualize patterns of trade, drill into behavior to identify potential compliance violations. A Big Data platform is ideal for these complete range of requirements.
Key Design Requirements for a Market Surveillance System for MiFiD II and MAR
The most important technical features for such a system are –
The next and final post will delve into the above logical architecture and will discuss the end to end flow from an open enterprise Hadoop design standpoint. We will use the Hortonworks Data Platform (HDP) and Hortonworks Data Flow (HDF) as candidate technologies for the implementation.
The Hortonworks 100% open-source solution is at the heart of it all in financial services: Connected Data Platforms for data-at-rest and data-in-motion. Working together, Hortonworks Data Platform and Hortonworks DataFlow to provide our retail banking and capital markets customers a crucial competitive advantage in their dynamic, competitive industries.
To learn more about how financial services enterprises use Hortonworks solutions to analyze Big Data, visit https://hortonworks.com/solutions/financial-services/.
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