Request demo The arrival price method will be mandatory from 1 January 2025. Early implementation in your processes will ensure legal compliance as soon as the regulation comes into force.
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Compliance out of the box
Depening on the circumstances, we support Slippage and several fallbacks to Basis Points and Hybrid methods ensuring compliance
Arrival Prices
We advise on the procurement of precise execution time information and help with the efficient processing of market data
Coverage Check
We assist you with coverage check to ensure we can find the most relevant market provider for an optimal coverage during the implementation project
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The PRIIPs-Regulations: The challenges that will arise
The Arrival Price methodology introduces challenges to the Asset Management industry, including the shift from Basis Points to Full PRIIPs Methodology, the need to adapt to a comprehensive evaluation of explicit and implicit costs, and the complexity of determining Arrival Prices based on timestamps from 3 years back
Basis Points vs. Full PRIIPs Methodology:
The transition from the traditional Basis Points method to the Full PRIIPs methodology poses challenges in adapting existing processes to the more comprehensive regulatory approach.
Adapting to Full PRIIPs Methodology:
The new methodology demands a holistic and dynamic approach to the evaluation of explicit and implict costs. For Fund of Funds, additionally, external fund costs need to be included and their impact considered.
Timestamp-Based Arrival Prices:
Determining Arrival Prices based on timestamps adds complexity, relying on accurate details of the transaction's date and time, considering market conditions and liquidity at the execution moment.
Further technical details:
The Arrival Price Method, to be implemented in PRIIP KIDs from the end of 2024, replaces estimated values with actual arrival prices determined at the time of placing an order in the market. This method incorporates historical tick data and necessitates a transparent set of rules for diverse asset classes. In cases where data is lacking, a guideline-compliant estimate must be used, aligning with Regulatory Technical Standards (RTS) guidelines.
Risks of product unavailability:
Investment management companies are anticipated to implement changes from the second half of 2024. They risk product unavailability from the beginning of 2025 without compliant regulatory documents.
Our Solution: CAPMATIX AM
Document and workflow automationDocument and workflow automation technology specifically for financial institutions. Accelerate your digital transformation process with our configurable software modules that integrate seamlessly into your digital infrastructure. Get your needs fulfilled by choosing Self-Service in our modern SaaS dashboard or rely on us in a Managed Services setup.
LPA standard AMT, Client data concierge
IHS Markit, THE ICE, Refinitiv
MorningStar
Data Management
Calculation
Slippage Methodology - Use of Arrival Prices Mandatory from 1st January 2025 for all PRIIPs
Basis Point Method - Use of Spreads Only for New PRIIPs from 1st January 2025
+ Client Documentation
+ Report Dashboard
+ Data Check
+ Monitoring
E-Mail Service
File delivery (SFTP)
Websites
Distribution Reports
CAPMATIX - part of a holistic solution
Sp
Structured Products
Automation of the output process for KIDs, brochures, term sheets, certificates and more for customers and authorities.
PRIIP KIDs
Issuance Automation
Brochures & Prospects
Final Terms
Term Sheets
Interactive, Websites & in App Docs
Otc
OTC Suite
Advanced trading technology, comprehensive product coverage and market expertise from the pre-trade to the post-trade phase.
Interactive, Websites & in App Docs
Trading
Post-Trade
Costs & Charges
Term Sheets
PRIIP KIDS
Digital Consulting
Am
Asset Management
Automation of European and local regulatory reports through software or managed services.
PRIIPs – MiFID, EPT, KID, EMT, TCC
SFDR
AIFMD (Annex IV)
Solvency II, TPT, SCR
CRR II, VAG, Solva, GroMiKV
With LPA, the leading partner in the industry, you are already prepared today:
Don't wait until its too late. Capmatix is Ready to go live NOW
One platform to scale your business across Europe
Multilanguage and multi-jurisdiction technology/reporting platform
100% compliant covering all changes in regulation
+100 Million KIDs generated with Capmatix. 800k PRIIPs calculation each day.
Project management and business analytics.
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Early clarification of document responsibility and current transaction cost sourcing is advisable. A proactive approach in the first half of 2024 allows ample time for process adaptation before the regulatory change takes effect at the end of the year.
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You have further questions? Let's answer them.
When does the Arrival Price Method apply to PRIIPs?
What is the background to the changes to the Arrival Price Method?
Specific transaction costs must be stated within the PRIIP KIDs. Currently, capital management companies have the option of estimating these costs approximately using the MiFID or estimation method instead of calculating them at great expense. The shift aims to foster cross-product comparability and mitigate the discrepancies introduced by varied estimation methods.
How does the Arrival Price Method for PRIIPs work?
The Arrival Price Method, to be implemented in PRIIP KIDs from the end of 2024, replaces estimated values with actual arrival prices determined at the time of placing an order in the market. This method incorporates historical tick data and necessitates a transparent set of rules for diverse asset classes. In cases where data is lacking, a guideline-compliant estimate must be used, aligning with Regulatory Technical Standards (RTS) guidelines.
Why should you switch to Capmatix now for the creation of your PRIIP KIDs?
Integrate the new regulations into your system with us now. We guarantee 100% compliance, including project management, business analytics and many other tools. Work directly with us as the market leader and benefit from our extensive expertise and top-quality service.
What will change with the Arrival Price Method for PRIIPs?
The changes have the greatest impact on three types of market participants: Reporting providers will have to comply with the new standard and prepare their licences, databases and IT accordingly. Asset management companies will be affected next and are expected to start implementing the new requirement in earnest from the second half of 2024. Finally, asset managers are the third affected party, as they may not be able to sell products from the beginning of 2025 if no regulatory documents are available.
What is Capmatix?
Capmatix is a software framework to automate workflows and documentation for OTC derivatives, structured products, complex contracts and asset management. Capmatix for Asset Management has the capability to generate all necessary reports and conduct calculations to ensure your full compliance
Can I arrange a free demo?
You can arrange a non-binding demo appointment at any time. If you seek more information on LPA's Capmatix AM solution and services, please feel free to reach out. We are eager to collaborate with you.
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If you seek more information on LPA's Capmatix AM solution and services, please feel free to reach out. We are eager to collaborate with you.
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