MiFID II requires that Equiduct and our members synchronise clocks to Coordinated Universal Time (UTC), and can demonstrate traceability to UTC. RTS 25 states that this is necessary to conduct cross venue monitoring of orders and detecting instances of market abuse. It will also allow National Competent Authorities to be able to reconstruct all events relating to an order.
Equiduct already operates a gateway-to-gateway latency of less than one millisecond which means that Equiduct’s implementation of UTC clock synchronisation is required to ensure that we have a maximum divergence from UTC of 100 microseconds and we will be displaying microsecond granularity in all pre and post-trade messages.
Development is already underway that will allow members to test with microsecond granularity in both FIX (trading) and ITCH (market data) interfaces. The release into our test environment will be communicated to all members in due course.