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Itiviti Systematic Internaliser

Enables internalization in a MiFID II landscape. Built on best practice market making.

Internalization functionality

Part of the Tbricks by Itiviti trading ecosystem, Itiviti Systematic Internaliser facilitates compliance for execution venues registered as Systematic Internalisers under MiFID II. It provides the key internalization functions: liquidity provision, transparency and the matching engine. By controlling the entire trade flow, from Smart Order Router (SOR) to the matching engine and quoting, trading risk is minimized, while allowing for flexible and creative trading scenarios.

A Systematic Internaliser is obliged to disclose data related to execution quality on a quarterly basis. Meeting these requirements is easily managed through Itiviti Analyst, the pioneering regulatory solution from Itiviti.

Liquidity provision

Market making is in Itiviti’s DNA, at the core of what we do. Market making enhances liquidity and ensures efficient, fair pricing, keeping instruments in line with their actual value.

Providing liquidity for Itiviti Systematic Internaliser based on existing logic allows for control of quoting activity and risk exposure, together with tailored trading strategies supported
by a broad feature set which includes:

  • Liquidity provision with correct pricing, offering versatile pricing models, considering MiFID II parameters such as capped and liquid.
  • Automated hedging using order tactics, algorithms or SOR strategy, depending on urgency.
  • Position management using the dynamic framework available.
  • Risk management, controlling risks associated with providing liquidity.
  • Circuit breakers, providing comprehensive protection against trading conditions.
  • Flexible Request for Quote model with automated responses based on instrument classification and exposure.

Transparency

Itiviti Systematic Internaliser helps ensure compliance with MiFID II transparency rules by means of:

  • Pricing distribution protocol for integration with and data exchange with external systems.
  • Pre-trade transparency, offering functionality for standardized integration.
  • Publication of trade reports to Approved Publication Arrangements (APAs).

Matching Engine

The matching engine is where it all comes together. Keep it simple, keep it fast.

Itiviti Systematic Internaliser features a fast and flexible matching engine that facilitates high performance multi asset such as retail and institutions and hidden quote volumes. In
addition, it permits different trading models and enforces MiFID II compliance while allowing users to focus on their core business.

MiFID II integration

Itiviti Systematic Internaliser is integrated with ESMA’s MiFID II database, to keep track of MiFID II parameters such as LIS thresholds, SMS, SSTI, Liquidity Classification and capped/non-capped instruments.

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