Esprow Pte. Ltd., provider of enterprise testing technology for the financial markets, has launched ETP GEMS, its Global Exchanges and Markets Simulation platform to enable market participants to test trading algorithms’ design and functionality, as well as venue connectivity, and to comply with the latest MiFID II requirements.
The latest MiFID II regulatory technical standards (RTS) require financial firms to test all algorithms and certify connectivity with counterparties and trading venues, prior to market use. ETP GEMS allows brokers to test trading algorithms independent of the trading venue, enabling them to carry out required MiFID II assessments easily and efficiently. The service can also be deployed by exchanges as a service to their members, to provide a global, secure, reliable and fully audited testing ground for market participants and partners.
ETP GEMS is available on-cloud and on-premise, 24/7, which removes the current testing window limitation – as most trading venues do not provide round-the-clock test environments. This restriction has required clients to use valuable time and resources for test activities during open market hours, often while operating in different time zones.
The platform can be deployed across the business, providing scalability and security. ETP GEMS provides multiple trading functionality such as the option of accessing multiple order books, replaying synthetic and historic market data and controlling trading behavior, including market auctions and race conditions.
Esprow ETP GEMS provides matching engine functionality and native trading connectivity which exchanges can offer to all their members to facilitate their connectivity and conformance testing. It currently supports a number of Asian exchanges – including Hong Kong and Tokyo – and many FIX exchanges, and will add multiple US exchanges later in the year.
Francesco Lo Conte, Managing Director at Esprow said: “ETP GEMS is the first of its kind – a high-fidelity exchange simulation platform covering global markets. ETP GEMS has been developed in cooperation with market participants. Our platform allows brokers to comply with MiFID II regulations when testing their connectivity and algorithms, and provides them with a 24/7 testing environment that was not previously available.” He added “We are also delighted that ETP GEMS will enable exchanges themselves to provide an important, on-demand algorithm testing solution for their members.”