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Cinnober today announces the launch of TESS OTF - a Software as a Service (SaaS) - packaged for the rising Organized Trading Facility (OTF) market.
The new offering is suited to major banks, brokers and other financial actors that in the near future will need to implement new technology to fulfill MiFID II, the new regulatory framework for the European financial market. It comprises a fully hosted and managed OTF system with exchange quality including a broad range of add-on functionality to shape and extend the service. TESS OTF also includes fully fledged market surveillance. The capacity in terms of transaction volumes and throughput can easily be scaled up on demand, allowing customers to grow as their business grows.
The service pricing is based on usage in terms of capacity level, asset classes and functions. The subscription fee covers both software license and services, and there are no major startup costs. Time to market is usually only a matter of weeks.
"This release now makes it easier for European market participants to get off to a flying start implementing MiFID II compliant services, and in a very cost-efficient way," said Nils-Robert Persson, Executive Chairman of Cinnober. "We're happy that our experience has led to contributing a great OTF solution to this community. This offering is an attractive alternative for people who would otherwise have to rely on expensive internal development to create what they need."
The original regulatory framework MiFID came into force in 2007 and restructured the European financial markets. MiFID II adds previously unregulated OTFs to the MiFID framework to include evolving business models such as Broker Crossing Networks. The Commission has estimated the overall costs of the MiFID II review at €512 to €732 million for one-off compliance and between €312 and €586 million for ongoing costs.
The Swedish-based technology supplier Cinnober has a strong track record of delivering customized solutions to some of the worlds most demanding trading and clearing venues, based on the high-performance TRADExpress Trading System. TESS stands for TRADExpress Streamlined Services and makes the company's proven marketplace technology, including matching engine and surveillance, available as a subscription service.
"We realized what MiFID meant to our business a couple of years ago and I think MiFID II creates even greater opportunities for a forward-thinking supplier such as Cinnober," Persson continues. "I'm proud over our track record in launching new offerings that can future-proof our customer's business models against the ever-accelerating changes of the regulatory environment."
Cinnober is the leading independent provider of marketplace and clearing technology, delivering solutions for trading, market data distribution, market surveillance, clearing and real-time risk management. Earlier this fall the Brazilian giant BM&FBOVESPA chose Cinnober as its technology partner for a huge multi-asset, post-trade and clearing project.
