ACCESS TO THE MARKETS
In 2022, work continued to facilitate the customer journey:
- the requirements of Moscow Exchange Group companies for documents as part of the KYC procedure were harmonised, which helped optimise the list of KYC documents.
- A unified group storage facility for electronic KYC documents was put into production, and a unified process for receiving and processing paper KYC documents across the Group was created; as a result, customers were able to submit a package of documents on a one-off basis to one of the Group companies.
- The Personal Account of trading and clearing members was further developed:
- the option of submitting a single client questionnaire via the Personal Account to all Group companies was implemented;
- customers were provided with a service for creating and submitting a digital power of attorney through the Personal Account, as well as for monitoring the validity period of the powers of attorney granted.
- The unified client registration system was brought in line with new legal and market requirements due to the changing geopolitical environment, and residence-based client marking became available.
- The process of connecting non-resident clients to the EDI service was streamlined, with the option for processing scanned copies of documents followed by mandatory sending of originals.
- Robotisation makes internal processes more technologically advanced and less time-consuming, reducing the time it takes to process customer enquiries.
Finuslugi (Marketplace of financial products)
In 2022, the process of identifying individual customers in onboarding to the Finuslugi platform was accelerated by 40% through the introduction of automatic passport recognition of individual customers and changes to the identification process, enabling customers to access platform services faster: deposit opening, loan processing, insurance policies and investment instruments.
High system availability
Moscow Exchange continues to demonstrate the high reliability of its technology platforms, with a trading system availability ratio of 99.99%.
Support processes based on monitoring teams and specialist work are built on a 24*7(5) on-demand basis.
Processes for handling customer enquiries have been improved, resulting in a 30% improvement in the timeliness of enquiries.
In 2022, load testing of trading and clearing systems (TCS) was successfully conducted with market participants and the following conclusions were drawn:
- The TCSs of all markets have a significant performance and information capacity reserve relative to the parameters of production trading.
- All markets’ TCSs maintained the operability of all subsystems within the limits of data volumes and constant, not just peak, transaction frequencies shown in the table.
An approach has been developed to managing the Group’s IT landscape based on business competencies.
Launched a programme to harmonise the Group’s IT landscape, the main objectives of which are:
- reduction of operational risk;
- reduction of operating costs;
- speeding up implementation.
Production process streamlined in terms of incidents, issues and processes with process regulations prepared and teams connected to production metrics.
Production culture is built: CI/CD pipelines, DevSecOps. Production speed and quality are measured, and deviations are dealt with.
All Moscow Exchange teams are connected to the platform solutions and tools. This allows a fully unified production landscape, thereby speeding up development processes and saving resources significantly.
The internal engineer portal is being improved, which is arranged according to the principle of self-service without the involvement of third-party resources.
The processes of establishing a competence centre for the development platform have been initiated, which has already made it possible to unify the development tools and pipelines among all Group companies.
A unified project portal has been established and the process of managing tasks in a single planning location has been built.
Production speed and quality are measured through lead time and cycle time of tasks, percentage of devops coverage, defect contaiment, etc.
Elements of digital transformation
As part of the ongoing digitalisation process, the introduction of Russian software has begun.
The Exchange is embedded in an ecosystem of Russian and independent technology development (bringing in-house solutions to market, private consortia, government participation).
At all stages of implementing IT tasks, Moscow Exchange follows the principles of “Security by design” and secure development practices.
To eliminate the risk of dependence on a single external IT resource provider, the Dedicated Development Centre format with a single resource provider has been replaced by the Supplier Pool format, which is a flexible and efficient tool for sourcing IT resources.
The Vendor Pool provides:
- flexible resource base management,
- the best human resources at a market price,
- increased recruitment speed,
- common principles and services across the Group,
- reduced dependence on IT resource providers.
High-speed market data feeds
In October 2022, Moscow Exchange introduced new high-speed market data distribution protocols (SIMBA ASTS) and access (FIFO TWIME ASTS) in the Equity & Bond and FX Markets. The new services are an in-house development of Moscow Exchange and are intended for banks, brokers, algorithmic and high-frequency traders, which co-locate their equipment in the Exchange’s data centre.
SIMBA ASTS is the fastest market data feed available for the Equity & Bonds and FX Markets. The protocol is based on the modern Simple Binary Encoding, which significantly speeds up the process of obtaining and processing market data by clients’ trading algorithms.
The main advantages of the service are:
- speed which is far superior to all existing protocols;
- unified message formats;
- an ability to quickly assess movements of the best prices;
- a dedicated high-speed network infrastructure in the colocation area.
Moscow Exchange introduced a similar service for derivatives in 2021.
New access protocol for FX and Equity & Bond Markets
FIFO TWIME ASTS is a new protocol used to access the FX and Equity & Bonds Markets that significantly accelerates the delivery and processing of trade orders compared with the previous FIFO MFIX Trade protocol.
The new service is able to transmit orders to the trading system without waiting for a response on the processing of a previous order (asynchronous order delivery), making trading more convenient for high-speed traders. Strict first-in-first--out (FIFO) compliance improves the transparency and predictability of the exchange’s IT infrastructure.
The new services deliver the best possible IT solution for clients of the Equity & Bond and FX Markets, whose trading strategies are extremely sensitive to the speed of market data feed and order entry latency.
Technical connection via partners
A model of technical connection to the Exchange’s trading and clearing system through the partner infrastructure of trading members has been implemented for trading members and their clients (subject to information security requirements). The model includes special tariffs and forms of contractual documents for ordering technical connection services. More than 25 clients from among trading members were connected to the Exchange’s TCS using this access model.