JPM Fined $800K for Surveillance Failure

Busy?  Yea, us too.  It’s been a crazy couple of months. Besides MiFID II projects, BroadPeak is rolling out a whole bunch of new stuff at the end of summer!  More on that in a bit…

JP Morgan got fined $800,000 for trade surveillance failures.   There’s some commentary HERE and the actual settlement HERE.  While this was in equities, there are some important things that can be learned for the Commodities, FX and IR markets.  Probably the big take away is that even in the equities markets, compliance personnel can easily get swamped with false positives.  It’s a brutal catch 22, because if your are tempted to “turn the noise down” there is a real risk of missing something important.   Long story short, beware relying on the little black box.  Surveillance takes dedicated and ongoing analysis.

On to the new stuff!


Like everyone else we are eagerly awaiting publication of the MiFID II commodity limits. K3 Limits already covers exchange limits but we’ve completed our development changes for MiFID II limits and expect we will be out of the gate with the most advanced solution nearly immediately after publication of the limits (expected in November).

Limits Training

In association with AIMA we will be running a Position Limits Training session next month (Sept 2017).  Keep your eyes open for an email invite.  If you want to get on the invite list shoot an email to with the header Position Limits.

MAR Compliance

A lot of firms are still behind on MAR.  If you are looking for a real time feed of your trades or order data, we’ve developed some technology that is literally plug and play.  I’d venture we could get just about any firm set up in less than a day.  Seriously, even if you are struggling getting CME or ICE feeds set up on your own …just give us a call.  We will talk you through the curve balls.

Project Codename: “X”

We’ve never talked publicly about project X, but this is a big one. K3 has always connected to exchanges for trades and orders.  It’s become a bread and butter part of K3’s offering.  But we’ve been making some changes to the K3 backbone that significantly changes the level of throughput and speed.  While K3 can manage and transform about 165,000 trades or orders per second using (standard hardware), we’ve made some changes that (on that same standard hardware) exceeds 1,000,000 trades and orders per second.  Why would we do this?  Oh, enter a cliche quote here about skating to where the puck will be.  So much more on this toward end of year.


Position Limits and Transaction Reporting Webinar

Further to the very successful legal and operations focused webinars we completed with Katten Muchin Rosenman LLP on MiFID II limits and transaction reporting BroadPeak will now be holding a webinar on how technology solves thesshutterstock_453728338e challenges.  The presenters will give best practices for meeting these regulatory challenges efficiently with technology and also give a live demo of K3 for Position Limits and Transaction Reporting. The webinar will last one hour and time will be reserved for Q&A.

Register here

The Long Arm of MiFID II Limits

No matter where you are in the world-  Irrespective of whether you fall under MiFID II –If you trade commodities in Europe you are subject to MIFID II limits.

This and so much more in the webinar below.

MiFID II Webinar and Q&A with BroadPeak and Katten Muchin Rosenman LLP

Word has spread since the first webinar we did on this subject and after multiple requests we are repeating the webinar for those who missed the first one.

The webinar on 26th April 2017 at 15:00 GMT16:00 CET and 10:00 EST will discuss the latest developments in relation to MiFID II / MiFIR transaction reporting, position reporting and position limits monitoring.

The webinar will offer insights from a legal and technical perspective and is designed for the needs of UK, EU and US participants trading EU listed instruments/derivatives.

Register here

MiFID II Webinar Q&A With AIMA, Katten and Broadpeak

AIMA, BroadPeak and Katten Muchin Rosenman had a great webinar and Question and Answer session last week on MiFID II transaction reporting and position limits.  We had just over 350 attendees and could not quite get to all the questions.  So, we have put our heads together and are publishing the first set of questions here.   (Position Limit Questions to Follow!)

If you have questions about MiFID II please feel free to reach out to any of the EUpresenters below.

Nathaniel Lalone:

Gordon Allott:

Neil Robson:

Tom Eisner:


If we do not have MiFID II reporting obligations, do we have to monitor MiFID Position Limits?

YES.  The long arm of MiFID II requires firms to monitor their European trades no matter where they are located.  Much like exchange limits, CME and ICE don’t care where you are, if you trade there you are required to monitor limits.

 If we report under EMIR, must I also report it under MiFID II?

Very likely.  It’s important to remember EMIR and MiFID II are two entirely different regulatory regimes. While EMIR is focused on systemic risk, MiFID II is focused on market abuse.  On the surface, given the similarities in data fields, this will seem like duplicate reporting but in fact there are notable differences in the data.  Thus, if a firm is reporting under EMIR, it is highly likely that additional reporting (to an ARM) will have to be made for MiFID II purposes as well.  Having said all of that, if your firm is a commodity firm and falls under the “ancillary test” threshold you will not need to report.

 Would a bespoke OTC FX Option be eligible for reporting?

Yes.  If the entity is in scope of MiFID II/ MiFIR, this is a reportable transaction.  For example, the transaction above may be both reportable under EMIR as well as MiFID II.

For AIFMs , that manage managed accounts and report under EMIR, what is the additional requirement?

AIFMs that manage managed accounts may or may not have to perform additional reporting to meet the MiFID II requirements, depending on which jurisdiction they are in, and how the local regulator has implemented the MiFID II/ MiFIR transaction reporting rules.  In the UK, a firm that is an authorised AIFM and which has FSMA Part 4A permission to manage investments (a MiFID-equivalent activity – making the firm a “collective portfolio management investment firm”) does not have to undertake MiFID II/ MiFIR transaction reporting – so the EMIR report would be needed but not a transaction report to a UK ARM.

Please can you reconfirm the obligation for transaction reporting. The slide seemed to be saying that on venue transactions don’t need to be reported by MiFID investment firms?

This is an important transaction reporting nuance of MiFID II.  If you are trading “On Venue” (via MTF/OTF) MiFID II only obligates the venue to report on your behalf if you are NOT subject to MiFIR.  If you are subject to MiFIR, then the obligation remains with your firm.

With the obligation, the following question is, “Can the responsibility be delegated?”  In this case the venue may (but not necessarily) report on your behalf.  However, the obligation will always remain with your firm.  This means that no matter who is doing the reporting, it is always necessary that your firm ensures proper reporting.

When managing multiple managed account in parallel, the question is whether we should report the transactions that we made on behalf of all of our clients (either directly or via the executing / clearing broker) or if it’s up to each individual clients to comply with the requirements and report the transactions that need to be reported.

If the investment decision remains with your firm on these managed accounts, then the reporting responsibility is with your firm.

How would a firm identify if it is reportable as an EE OTC?  For a derivative instrument traded OTC, such as an interest rate swap, is reportable? Assume no ISIN for the instrument or underlying. Would the IRS be a non-reportable instrument? How would a firm identify if it is reportable as an EE OTC?

The first question is whether there is an underlying on a trading venue somewhere in the EU.  For some products this will be fairly easy to identify. (For example, an OTC equity derivative on a French company traded on Euronext.)  For other products, such as IRS, there is a high probability that there is an on venue product that is the economic equivalent even though the trader may not have been thinking about it at the time of execution.  To the extent that compliance feels there are substantive differences between the OTC product and the closest underlying (and hence the choice to not report the transaction), it is good practice to internally document the reasoning behind the distinction (in case the regulator ever asks why it was not reported).

Identification of reportable transactions is probably one of the most important immediate exercises.  Consideration should be given to the entire portfolio, looking at all transaction types executed as well as potential embedded equivalent positions in ‘exotic’ transactions.

Do you have a view on personal information, are some firms using a reference code rather than supplying the personal information (passport numbers) themselves?

Please speak with your legal counsel about the appropriate personally identifying information for your country – the requirements vary across the EU.  This is primarily governed by Regulatory Technical Standard 22 (RTS 22) and caution should be exercised about submission of non-conforming personally identifying information.





Conference for ESMA Updates on MiFID/MiFIR/EMIR/SFTR Reporting

BroadPeak will be exhibiting at the March 28th Infoline conference in London.  Come to learn from and speak with regulators, repositories, end-users, and service providers.

30% discount by using promo code FKM63482BPK or click directly below.

Sign up »

Specific topics we will be discussing include:

  • Difference between trade reporting and transaction reporting
  • Ensuring non-duplication of trade reporting
  • Validation submissions and keeping a permanent record of acknowledgements
  • MiFID II Position Limits – Where is the reference data?
  • How to handle changing requirements

BroadPeak Partners with Unavista for MiFID II Trade Reporting

Broad Peak Partners announces a partnership agreement with the London Stock Exchange’s UnaVista for MiFID II. A recognized leader in software integration, BroadPeak Partners is the developer of K3, an integration platform that seamlessly moves data from one application to another, and named by TechCrunch in 2012 as one of the most disruptive applications of the year. Since then, K3 has spread across a happy roster of Fortune 500 clients ranging from bulge bracket banks to midsize industrials striving to harness their most valuable asset: data.

MiFID II significantly extends transaction reporting to a wide array of financial instruments and derivatives intended to improve the integrity of European capital markets. When applied in January 2018, MiFID II will re-engineer market infrastructure with far-reaching effects on everyone engaged in the dealing and the processing of financial instruments, forcing brokers, dealers, trading venues, hedge funds, asset managers, and global corporations to re-assess trade reporting. MiFID II will also have a global impact, forcing Asian and American firms to comply when doing business with European customers. Buy side or sell side, large or small, confidence in meeting MiFID II requirements hinges on nimble data reporting capabilities.

According to Gordon Allott, President & CEO of BroadPeak Partners, “We are very excited to partner with Unavista, as both of us are highly experienced in reporting and prepared to meet the challenges of MiFID II,” Allott continued, “With over 250 million trades reported under Dodd-Frank, EMIR, Canada and other jurisdictions, K3 has become a force in powerful and easy to use integration and technology. K3 is designed for use by non-technical users. Everyone knows the IT team is too busy and Operations is too weary for yet another call to ‘update the interface, or trace a data flow problem’. K3 is an intuitive user interface where non-technical people can truly manage data transformation from source to sink.”

Wendy Collins, Global Head of Partners UnaVista commented, “We are delighted to be partnering with BroadPeak to allow their clients’ connectivity to UnaVista for MIFID II reporting. The partnership will enable clients to utilize leading technologies from both organizations to fulfill regulatory reporting in a timely and efficient way.”

About BroadPeak
Founded in 2007, BroadPeak Partners is a NYC based software company and the developer of K3. Named as one of the most disruptive technologies by TechCrunch, K3 has brought the power of agile data integrations to Fortune 1000 companies around the globe.
While K3 could be categorized under archaic terms of middleware, ESB, ETL and SOA, at the end of the day it’s brilliant data plumbing. K3 is a quick to deploy and easy to manage application that makes enterprise application integrations more efficient and substantially reduces maintenance workloads. K3’s unrivaled technology is ready to meet MiFID II challenges and builds on existing regulatory reporting (Dodd-Frank, EMIR, Canada, etc) for a suite of global trading customers.

For more information email us.

Also check us out on Twitter or LinkedIn.

Enterprise Technology | Stop | Clear Your Mind

Name 3 technologies (software, open source, other)  that made a significant positive impact for the enterprise in 2016.

Corporate IT departments are a tough place to be these days. On the one hand IT departments are constantly hammered by the business to execute, execute, execute.  On the other hand they are shutterstock_551605303handcuffed by some “Cargo Cult” barriers that sound a lot like: “I know it’s senseless, but this is how it’s done here.”

Having said all that we are in a golden era of technology.  Some technologies are so striking, you’d have to be a damn fool not to adopt them.  Which brings us back to the original question:

Name 3 technologies (software, open source, other)  that made a significant and positive impact for the enterprise in 2016.

We debated this over lunch last week.  Some of these might evoke a kind of “Pfffffft,  Duh!” response. If that is the case this article might not be for you.  Count yourself lucky.  In your typical, corporate IT departments even the most positively impactful technology can easily get left on the roadside.

Some notes before you get angry:  1. We named the market leader.  If you are using a peer, we are not saying its bad, just it’s not the market leader. 2. This is the result of a lunch debate.  There is no element of  “Pay Some Money and Get An Award” here, just the result of good discussion with very knowledgeable enterprise people.

For the Business

Tableau.  Tableau changed a lot.  Used to be that beautiful business intelligence took ages to produce. Now?  Give a smart junior employee Tableau and watch the insight flow.  Ok, so you are using Spotfire or Qlik.  No objections here.  The trick is that you are getting insightful reports ASAP.  Caution!  The second that Tableau hits town, IT departments start getting asked for “Just the raw data, please.”  Some people get threatened by this, so if you are an executive, it’s important to clear the road for your analysts.

Slack.  If you are in a Windows/Outlook heavy world, as most corporate departments are, Slack is a Godsend.  Seriously, email is the worst means of communication… ever.  Slack plows the communication road by providing a seamless environment for chat, file share and expedited process.  We’ve seen slack make a real impact and as a company it’s probably far enough ahead that it will be hard to catch up with.

SalesForce.  We hotly debated putting this here, but SF is still the vanguard for true SaaS.  Like some of the others it’s not “fresh out of the box new” but it continued to make a big impact for the enterprise in 2016.  Note: We hear so many people touting enterprise SAAS.  But until you have clean, well documented APIs like SalesForce (and can run multi-tenant), YOU ARE NOT A SaaS APP!

For IT Departments

Amazon Web Services (VPC):  AWS Virtual Private Client is nearly entirely responsible for blurring the line of corporate “on premise” servers and “the cloud.”  The oft heard mantra from corporate IT departments is that: “We keep everything in house.”  This has always meant long wait times to get servers spun up and project delays.  VPC is “software defined networking” where you can take an Amazon server and make it entirely behind your firewall.  Unless you are on your corporate network, it’s impossible to access.  The beauty of this is that corporate IT departments can literally spin up dozens or hundreds of servers in minutes.  VPC really hit its stride in 2016.

Docker:  If your IT department is not using Docker, I’m going to flat out say it: They are a bunch of damn fools. This is the world of software containers.  To make a long story short, a lot of IT time is spent installing, uninstalling, and moving applications.  Every time you do this there is heaps and heaps of configuration, libraries, files etc to move.  Docker eliminates all this nonsense by putting your apps (whatever they are) into a tight container that can be managed and moved.  It plain old time saver and makes IT far more nimble for the business.

Splunk:  It’s a bit nerdy but if you are sitting in an IT department, most of your troubleshooting has to do with dreaded log files.  Every server, every application cranks out gigabytes and gigabytes of log files.   Splunk is a cool tool that helps IT departments stay on top of all these files and render important metadata about what’s happening across the enterprise.  It really gets IT departments out of the trees to see across the forest.

Who Didn’t Make the List?

Hadoop (Mongo, Cassandra, Other):  Almost on the list.  Some very significant debate here. Hadoop/ NoSQL made big inroads in 2016.  But we had difficulty pointing to a “significantly positive impact.”

Distributed Processing (Spark, Kafka etc).  Yes, we love, love, love it too.  Sooo close.  2017 list almost for sure.

Blockchain:  Ooooh blockchain!  So disruptive.  So theoretically possible to make a positive impact.  But we are looking at this for our 2018/2019 list.

JIRA:  If you are in dev you’d probably say JIRA.  We’d agree.  Impact: YES.  Significant positive impact for the enterprise?  Nominal.

AWS Lambda:  If you said AWS Lambda….oh we really like where your head’s at.   This could be a number one in 2018.

Graph DB’s (Datomic, Neo4J) Wow you know about this?  Go you!  We love it too.  But it’s a 2019 impact.

Wanna argue about this some more? Give us a call or send me an email …


CME Group & BroadPeak Offer Cloud Access to CME STP

K3 has been making it easy for firms to get a full electronic record of trading activity for years now.  Now working with CME Group, K3 is taking another giant step…to your doorstep.

You get a taxi or dinner delivered at the press of a button. Now experience the same for trade data.

No more IT projects.  No more FCM files.

Simply trade and receive the data you need to manage risk…instantly.

We bring with you the CME STP API in the cloud, powered by K3.

No infrastructure required.  Sign up and consume data.



Forget about fetching trades via FIX.  K3 in the cloud will serve your trade data in a format you can use to manage risk internally.

  • xml, csv, json, etc
  • Business friendly values
  • Custom fields based on mappings and rules
  • Support desk for questions

Email us to get started.


Death, Taxes, and MiFIDII

We haven’t even got everyone back in the BroadPeak offices after the holidays but we are already slammed with MiFID II requests and enquiries. To try and make everyone happy we are doing a variety of different events for which you are welcome to sign up:

  1. London dedicated week of K3 demos – Jan 9 – 13. We have a few slots left for in-depth presentations
  2. Drinks reception London – Jan 11. A more informal way for you to meet with us and others in the industry to strategize on MiFID II
  3. Web demos – As always we are happy to do a web demo at any time.
  4. Exhibiting and Sponsoring at the ETRC Conference London

Check out our blog for more regulatory resources.

Email for more information or to arrange a time to meet.


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