Led by former AxiTrader General Manager Quinn Perrott, TRAction FinTech launches trade reporting in London
Following on from its growth in the FX, CFD and OTC derivatives reporting sector in Australia, TRAction Fintech has launched in the UK and Europe to meet the demand in the region for extra competition in service offerings to assist brokers with reporting trades under the EMIR and MiFID legislation. With regard to how TRAction […]
Following on from its growth in the FX, CFD and OTC derivatives reporting sector in Australia, TRAction Fintech has launched in the UK and Europe to meet the demand in the region for extra competition in service offerings to assist brokers with reporting trades under the EMIR and MiFID legislation.
With regard to how TRAction Fintech intends to differentiate itself in the highly competitive British market, Quinn Perrott, the company’s General Manager, explained “There are two key areas where we think TRAction Fintech really distinguishes itself from other services in this market.”
Firstly, in terms of pricing structure, Mr. Perrott explained “TRAction Fintech is unique in having a monthly fee cap.”
“It is quite common in the UK for brokers to be subject to high trade reporting fees but with a reasonable yearly cap. In effect brokers end up paying for a year’s worth of trade reporting in the first month and then get the subsequent 11 months for free. That is why TRAction Fintech listened to what was required in the industry and understood that there was a sense of frustration resulting from being locked into a provider” – Quinn Perrott, General Manager, TRAction Fintech.
The second aspect that the company considers important in terms of differentiation is service level and holistic understanding.
“The other thing that sets us apart is our holistic approach and specialization” said Mr. Perrott.
“There are plenty of companies that can provide trade reporting software or provide consulting on how to set things up, however there are a very select few that can take on the whole puzzle, end to end as their core business like TRAction Fintech does” he said.
Sophie Gerber, Director of TRAction Fintech, as well as a highly respected lawyer in the FinTech and OTC derivatives industry as a Director of Sophie Grace Legal Pty further explained “With MiFID II just around the corner we believe that we have entered the UK market at the right time when most brokers will be evaluating their trade reporting setups. We have also found that even as we come up to the 3 year anniversary of EMIR reporting having commenced, there is still a fair amount of confusion in the market place.”
“Here are two key examples we have come across” she explained.
1) – Brokers assuming FX is not reportable under EMIR due to the spot FX exemption.
Ms Gerber stated “FX derivatives, such as those traded on MetaTrader 4 or similar platforms, often do have their underlying price feed from spot FX, however they are not exempt because they do not ‘settle’ and do not meed the commercial purposes test.
2: Spread betting not being reportable because it is gambling.
“Yes, spread betting is gambling but it is also a reportable OTC derivative if it is based on a reportable financial product. Basically if it is reportable as a CFD it is also reportable as a spread bet.