TRAction at iFX EXPO International 2023: Quinn Perrott on automating regulatory reporting via MT4/5 and cTrader
“I think some of the biggest challenges is for firms that are doing a million trades a day and have 20 liquidity providers, making sure that they have instantaneous accurate UTI synchronization.”
At the recently concluded iFX EXPO International 2023 in Limassol, Cyprus, FinanceFeeds Editor-in-Chief Nikolai Isayev sat down with TRAction co-CEO Quinn Perrott to discuss the firm’s pioneering work in the regulatory technology sector, commonly referred to as regtech.
Perrott also outlined the competitive landscape, key advantages of TRAction’s services, and the upcoming challenges in the industry.
As a reminder, TRAction won ‘Outstanding Regulatory Reporting Solution’ at the FinanceFeeds Awards 2023 in August.
“We think the source of errors is Excel and people”
TRAction, founded in 2015 in Australia, quickly expanded its footprint, establishing offices in London, Cyprus, and Singapore. The firm specializes in acting as an intermediary between regulated financial firms and licensed Trade Repositories (TR) and/or Approved Reporting Mechanisms (ARM). “We are not just guiding them or advising them on their trades and what’s trade reportable. We are not just a software company…And we are not just a trade reporting avenue, we’re all three,” Perrott explained.
The co-CEO underscored the importance of automation in the regtech industry. “We think the source of errors is Excel and people,” Perrott pointed out. TRAction seeks to automate trade reporting by directly integrating with trading platforms like MetaTrader 4 and 5, as well as cTrader – the partnership with Spotware Systems was announced days ago.
Discussing the cost efficiency of their service, Perrott emphasized that TRAction could offer a suite of services at the same cost a client might incur for merely one service if they were to go direct. “We provide multiple services directly to our clients…by having a master account, we get wholesale rates on that trade reporting, which means we’re able to do that full service for about the same cost,” he elaborated.
Challenges of going in-house
When asked about the most significant challenges clients face when attempting to manage trade reporting in-house, Perrott pointed to the problem of uncertainty. “The regulations, they’re very broad and they work with a lot of different industries,” he observed. TRAction offers a network where clients can benefit from shared insights across various regulatory environments.
Looking ahead, Perrott highlighted upcoming changes in EMIR (European Market Infrastructure Regulation) as a significant challenge. “EMIR Refit is not a new regulation, but it’s a change,” he noted, pinpointing new guidelines around Unique Transaction Identifiers (UTIs) as a key point of focus. “I think some of the biggest challenges is for firms that are doing a million trades a day and have 20 liquidity providers, making sure that they have instantaneous accurate UTI synchronization,” Perrott said.
“Things can get done in all time zones”
TRAction prides itself on its international reach, with key management staff based in both Europe and Asia-Pacific. “Things can get done in all time zones,” Perrott said, emphasizing the company’s true 24-hour operational capabilities.
As the industry braces for shifts in the regulatory landscape, TRAction is poised to continue offering invaluable support to its clients. With its emphasis on innovation and cost-effective services, the firm is setting the pace in the regtech sector.
As Perrott concluded, “It’s a very big year ahead for TRAction and its clients and the industry in general.” With 2023 winding down, the company looks forward to navigating the complex regulatory environment and fostering its reputation as a leader in the field.