Regulatory Time Synchronisation (CJC mosiacTS)
Regulatory time synchronisation
CJC mosaicTS - a solution to the challenge
the need for synchronisation
MiFID II clock synchronisation and time stamp requirements (RTS 25) mandate that trading venues and participants synchronise their clocks to Coordinated Universal Time (UTC). Competent authorities need to be able to reconstruct all events relating to an order in an accurate time sequence, over multiple trading venues. This is essential at a consolidated level for effective cross-vendor monitoring of market abuse.
A common reference
It is necessary to establish a common reference time and rules on maximum divergence from this, to ensure that all participants in a trade are recording the date and time, based on the same source and consistent with same standards. RTS 25 prescribes different time stamp granularities for venues, depending on their processing speed, and participants, depending upon the type of activity that they are engaged in. It’s also important to be able to distinguish between different reportable events which may otherwise appear to have taken place at the same time.
Coordinated Universal Time (French: Temps universel coordonné), abbreviated to UTC, is the primary time standard by which the world regulates clocks and time. It is within about 1 second of mean solar time at 0° longitude. The current version of UTC is defined by International Telecommunications Union Recommendation (ITU-R TF.460-6), Standard-frequency and time-signal emissions and is based on International Atomic Time (TAI) with leap seconds added at irregular intervals to compensate for the slowing of Earth's rotation.
Consistent and continuous accuracy
MiFID II RTS 25 requires time synchronisation to work at all times and for timestamps to be consistently and continuously accurate. The level of accuracy for members, or participants of a trading venue, is based on different types of trading activity. Record keeping requirements cannot be met if time is not verifiably synchronised during the entire trading day.
- Trading venues and trading participants are required to timestamp a large number of events and records with time synchronised to UTC within 100 microseconds.
- Trading venues have to use timestamps accurate to 100 microseconds if gateway-to-gateway speed is under 1 millisecond; 1 millisecond if longer.
- HFT market participants have to meet the 100-microsecond standard.
- Algorithmic, but not HFT, participants have to be at 1 millisecond.
- Human trading needs accuracy to 1 second
Are your time synchronisation requirements actively being addressed
Introducing Mosaic TS
Multi source, fully managed, compliance-grade time synchronisation
Mosaic Time Synchronisation (mosiacTS) is a multi-source, fully managed, fully audited compliance-grade Time Synchronisation system; a SaaS platform designed to aid compliance with MiFID II RTS-25, SEC Rule 613 and FINRA Rule 4590.
The service is based in strategic, industry leading datacentres with flexible connectivity options. A unified end-to-end solution, it offers NTP/PTP as a service, with customer client software for high accuracy, traceability and failover. Its low latency, symmetric private connection services are available over cross connect, VPN, leased line, ethernet exchange and cloud exchange.
There are four key features:
- Compliance Grade Time Synchronisation - with a MiFID II accuracy Service Level Agreement (SLA) guarantee
- Managing Time - multiple verified high resolution time sources with end-to-end clock synchronisation
- Secure Time Service - source check analytics and time threat detection
- Fully Audited Managed Service - an audit andcompliance service with a visualisation dashboard
Accurate, Auditable & Agnostic
MosaicTS aims to monitor the specific sequence of reportable events leading to a transaction outcome, creating uniformity between timestamp data sources. It delivers proof that your business clocks have been operating within the allowed requirements as defined by MiFID RTS 25. It can identify the exact point at which a timestamp is applied and demonstrate consistency.
MosaicTS goes beyond RTS 25 to take into account other MiFID requirements, market structure developments and other regulatory demands. Clock synchronisation and time stamps are interwoven with best execution compliance mandates. These apply to both buy and sell side participants and time stamp granularity is integral to market abuse surveillance, creating an end-to-end solution.
The system's powerful management capabilities provide reliability and traceability for systems that have to work all the time. It has a lower TCO than an in-house solution, with symmetrical private connection services.
We specialize in cloud technology, as well as consultancy and managed services that optimize data and trading technology operations, processes and commercial control for global capital markets firms. We help our clients:
- Transform their data platforms, both technically and commercially, to control costs
- Access innovative technology solutions
- Understand and comply with a raft of regulatory obligations
- Improve operational processes and control
With a global reach and offices in London, New York, Hong Kong and Singapore, we'd be delighted to learn of the challenges you face around data and how we may be able to help.
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