NEX Regulatory Reporting has selected the Duco Cube platform to underpin a Markets in Financial Instruments Directive II (MiFID II) reconciliation solution that is due to be ready for testing in autumn ahead of the MiFID II compliance deadline in January 2018. Going forward, the company will integrate Duco Cube into all it regulatory reporting services and add two more regulatory regimes to its portfolio.

NEX – formerly the ICAP markets and post-trade services businesses that were renamed after the sale of ICAP’s voice broking business to Tullett Prebon – considered a number of reconciliation options before selecting Duco Cube. The platform is integrated with the NEX MiFID II regulatory reporting service through an application programming interface (API) and supports reporting, validation and reconciliation. NEX Regulatory Reporting services are powered by Abide Financial software that was acquired by ICAP in 2016.

Collin Coleman, CEO of NEX Regulatory Reporting, comments: “By working with Duco, we will be able to scale fast and provide our client base with strong independent verification based on best-of-breed technology – all up and running before the January 2018 MiFID II deadline.”

Christian Nentwich, CEO of Duco, adds: “This collaboration is a good example of the modern API economy and the rapid time to market provided by combinations of Software-as-a-Service offerings.”

While NEX previously developed and included its own reconciliation functionality in its managed regulatory reporting services, Coleman says the Duco Cube platform will replace the in-house functionality platform across all services covering regulations from European Market Infrastructure Regulation (EMIR) to Dodd-Frank and regulations set down by the Australian Securities & Investments Commission (ASIC). Additional regulatory services on the NEX horizon include a solution for FinFrag, a Swiss initiative designed to align the Swiss regulatory framework with regulations such as MiFID II and EMIR, and the EU Securities Financial Transaction Regulation (SFTR), which aims to increase the transparency of shadow banking.