The document discusses GATElab's MiFID II-compliant fixed income smart order routing (SOR) system. It aims to provide transparency on non-equity markets by aggregating liquidity from multiple venues and counterparties. The system matches customer orders to aggregated liquidity, stores real-time activity snapshots for transparency, and publishes post-trade reporting. It supports a large range of fixed income products and implements best execution and its rules.

1. Ferdinando La Posta
Co-founder and CEO
GATElab
MiFID 2 – Compliant
Fixed Income SOR
system

2. MiFID II for non-equity products
and GATElab proposition

3. MiFID II key points
Page 3
• to reinforce transparency on non-equity
marketsCommitment
• uneven access to price info and to trading
opportunities; low quality of trade dataWhy
• to facilitate price formation, portfolio valuation,
best execution, higher transparency rules
avoiding loopholes such as “dark liquidity”
Purpose

4. Page 4
Aggregating multiple venues/multiple
counterparty liquidity pools
Matching customer orders against
super aggregated liquidity depth,
following total consideration, speed
and likelihood of execution principles
Storing in real time snapshots of
activities for end-user transparency
and publishing post trade reporting to
customers and regulators
Supporting larger range of products
for buy-side benefit
Implementing best execution
and its rules
How we can help: best execution

5. How we can help: mutilateral facilities
Page 5
Publishing bid / offer prices and the
full price depth on a continuous basis
for pre-trade transparency
Supporting price improvement for
investors
Supporting Institutional markets
Publishing post trade information for
post-trade transparency
Implementing multilateral or
organized trading venues and their
obligations

6. Page 6
Quoting bond instruments, following ESMA
liquidity clarification (COFIA/IBIA, dynamic
approach for SSTI) and quoting at least
50% of the daily trading hours
Defining trading models with pre-trade
transparency requirements
Publishing transactions in real time for
post-trade transparency
Supporting larger range of products for
buy-side benefit as well as retail presence
Implementing bilateral systematic
internalization and related obligations
How we can help: bilateral facilities

7. Page 7
Reviewing liquidity assessment as
regulators will redefine them
Extending transparency rules and their
monitoring to support regulators
Supporting Issuers in transparency
obligations
How we can help: adapting to changing rules

8. GATElab Smart Order
Routing system
for OTC and regulated Bonds, and Credits
Page 8

9. GATElab smart solution for bonds
Page 9
Credit markets are changing. A transition from voice OTC to
electronic trading means that markets will be more
transparent, margins will be lower and automated trading
activities will increase.
GATElab Smart Order Routing system for OTC and regulated
Bonds and Credits is a MiFID-compliant efficient solution for
trading aggregated fixed income and credit liquidity across
multiple venues.
This flexible system can be tailored and deployed locally at
customers’ premises, or it can be offered as a hosted
solution within the London Stock Exchange Group data centres.

10. GATElab Smart Order Routing
system
Aggregated liquidity and price
discovery
Page 10
Aggregated liquidity across a wide range of bond markets.
Executi
on
Report
Aggregated
market
view
Best Execution
Liquidity
MOT - EuroMOT
TLX - EuroTLX
Bloomberg
Reuters
MTS
HI-MTF
Internal SI
LSE ORB
HDAT
SENAF
Bondvision
Brokertec
Tradeweb
Automatic
Execution
Manual
Execution
Pre-Trade
Analysis
TCA

11. MiFID II is coming
Page 11
Best
Execution
Total
consideration,
speed and
likelihood of
execution
Price
Discovery
and
aggregation
Execution
and Real-time
transaction
reporting
Real-time
burden of
proof
Historical
order and
execution
data analysis
Traceability
GATElab Smart Order Routing system can provide a complete MiFID-
compliant environment.

12.  Burden of
Proof
 Trade
Reporting
 Back Office
Integration
 Automatic
 Manual
 Semi-Automatic
How does it work?
Page 12
GATElab Smart Order Routing system offers flexible access to
all OTC and regulated Bond markets. Its straightforward
processing, reporting and analysis makes it easy to
implement and easy to use.
 Regulated Markets
 ECN
 Price Feeder
 SI/OTFs
2.
Aggregation/Pri
ce Discovery
3. Order
Execution
Management
4. Post Trade
Management
 Web Interface/Retail
 FIX Wholesale HUB
 Remote GUIs
 Voice
1. Order Flow

13. FeaturesOrderFlow
Aggregation/Pr
iceDiscovery
Order
Execution
Managemen
t
Post
Trade
Managem
ent
Trading venues
MOT, EuroMOT,,TLX,
EuroTLX, Bloomberg,
Reuters, MTS , HI-MTF,
Internal MTF, LSE ORB,
HDAT, SENAF,
Bondvision, Brokertec,
Tradeweb
Order Management
Automatic
Semi-Automatic
Manual
RFQ based
Order types
Limit, Market, GTD
Interactive /
Automatic order
deletion
Technology
Java (client), C/C++
(server)
Windows, MS SQL
Linux, PostgreSQL
Best Execution
Price
CalculationMiFID Total
Consideration
MM dynamic ranking
list (updated
hourly)
Automatic
Management
Orders are managed by
the system which
discovers prices and
tries best execution
according to several
configurable
parameters (size,
customer, asset class,
dealer ranking list,
liquidity
Automatic
Instrument
DictionaryOTC Instruments can be
created and modified in
real-time and are
immediately available
for trading
Strategies
SOR behaviour can
be easily tuned
using strategy
trading component
SOR
ConnectionsFIX 4.x and 5.0,
GUI,
Web Gateway
RFQ
Can be received by
customers. Can be
issued to networks
supporting them
(Reuters TRFIT,
TradeWeb, MTS
BondVision)
Concurrent RFQs can
be handled
SOR
AdministrationSegregated users can
manage mark-ups,
auto/manual
thresholds and SOR
parameters
Frontend
Advanced desktop
client with virtual
desktops, multi-tab
windows, filters,
full style & colours
configuration
Auditing,
TraceabilityEvery execution, market
data and configuration
parameter is saved for
proof and compliance .
Automatic
Instrument
DictionaryOTC Instruments can
be created and
modified in real-time
and are immediately
available for trading
Integration
MQ, FIX, RDBMS, API,
Web service, Murex,
Bloomberg Trade feed
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14. Page 14
Many thanks