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 […]

reporting

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.

Read this next

Digital Assets

FINMA-regulated digital asset provider Taurus expands into Germany

This expansion follows recent moves by BaFin to accelerate the licensing of crypto custody services, aiming to boost market confidence. Following this, several new licenses were issued, notably to Commerzbank, making it the first full-service financial institution in Germany to receive a crypto custody license.

Inside View

Stocknet’s Nick Hall defends gamification as trading platform market set to hit $15.34b by 2030

“The growing popularity of gamified trading has the potential to tackle this financial literacy gap. Rather than simply giving users unfettered access to markets and letting them figure things out for themselves, platforms can offer virtual skill games and challenges to help educate traders and prime them for success.”

Inside View

Infographic: Interest rate and FX derivatives are driving rise of OTC derivatives market

These trends suggest a growing and evolving OTC derivatives market, with an increased focus on risk management and regulatory compliance. The rise in clearing rates, along with the increased initial margin requirements, reflects a more cautious approach to risk in the financial services industry.

Market News

Bank of Canada’s Final 2023 Policy Update on the Canadian Dollar and Future Monetary Landscape

The Bank of Canada’s final policy update for 2023, as reported by Bloomberg, had a relatively subdued impact on the performance of the Canadian dollar, especially when compared to the discernible market reactions following prior BoC policy decisions throughout the year.

Inside View

DTCC’s Systemic Risk Barometer Survey found 2024 US Presidential Election as a top risk

U.S. political uncertainty, particularly regarding the 2024 Presidential Election, has emerged as a key risk, with 51% of respondents highlighting it as a major concern. This reflects the potential impact of election outcomes on market conditions and the industry.

Executive Moves

Options Technology promotes Laura McCann to CFO

“Laura’s promotion to CFO is the next stage in our long-term strategy of building a world-class finance team servicing the global business from our Belfast office. Back in 2016, Jon took on the challenge of laying the groundwork for that vision. Laura has been an integral part of the strategy from day one.”

Digital Assets

Thailand’s crypto economy under the spotlight: a report by HashKey Capital

“I’m excited by the rapid expansion of Thailand’s Web3 sector. With over 3 million overall crypto users and 600% growth in the market in recent years, the dynamism in our DeFi and NFT sectors is clearly evident. Thailand is increasingly becoming a hotspot for digital nomads, drawn by our crypto-friendly policies, affordable living costs, vibrant food and beverage culture and diverse cultural landscape.”

Retail FX

Webull Australia offers 5.4% yield on uninvested cash

“US dollar money market funds are heavily regulated, meaning client funds are managed in a safe, reliable and trusted environment, which is of critical importance to us, and continues to remain top-of-mind for our clients.”

Digital Assets

Bybit welcomes Ethena’s USDe, a decentralized stablecoin utilizing delta-hedging staked Ether

“Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”

<