Download PDF

  • Have you identified a solution that strictly follows the prescribed “PMP Waterfall”?
  • How are you protecting your valuable principal and retail trade data?
  • Does your solution permit the setting of parameters and definitions that produce PMP calculations that uniquely fit your firm’s compliance standards?
  • Does your solution provider account for ‘side of market’ adjustments in Level II, Level III and Level IV situations?
  • Can your solution provider adjust side of market by Bid/Offer spreads including average Mark-up or Mark-down? Can you adjust PMP calculations for Retail, “Mini-Institutional” and Institutional Trades?
  • Can your solution provide Real-time and/or End of Day PMP Calculations?
  • If you have chosen a real-time PMP approach, are you planning to disclose PMP on all retail trades? If not, how will you eliminate PMP calculation values on trades not subject to the disclosure requirements?
  • What process do you have for identifying and resolving PMP exceptions (i.e., a PMP value that triggers a mark-up that is not within your compliance parameters)?
  • Does your process support a supervisory review and workflow to support post-trade PMP adjustments with proper documentation?
  • What type of data infrastructure do you have to support regulatory and Best Execution inquiries?

Correct answers below….

  • BondWave has developed a PMP process that follows the Waterfall, calculates the PMP value and identifies the Level and Step at which a value can be calculated. To date, we have performed over 150,000 PMP Calculations as proof of concept tests for our clients.
  • BondWave can implement our PMP Solution on a client-owned server behind their firewall; in a secure Cloud; or in a SaaS solution. All trade data is fully protected, and data is never shared outside of our client-firms.
  • BondWave’s PMP Solution was architected with customizable parameters and definitions for each Level and Step in the PMP Waterfall so that each client’s solution perfectly fits their unique compliance requirements.
  • BondWave’s solution contains a proprietary algorithm that enables ‘side of market’ adjustments ensuring extremely precise PMP calculations for Levels II, III and IV.
  • BondWave’s PMP Solution utilizes proprietary data sets that further enable ‘side of market’ adjustments by average Bid/Offer spreads that can reflect calculations for Retail, “Mini-Institutional” and Institutional Trades for Levels II, III and IV.
  • BondWave’s PMP Solution can be performed in Real-Time; End of Day; or Real-Time plus “n” minutes.
  • A real-time PMP process can create any number of end of day headaches, such as a need to back-out a PMP Calculation for a trade that is not subject to the disclosure requirements where a real-time PMP value had been previously calculated. The BondWave Oversight User Interface (UI) eliminates headaches and supports end of day reconciliation with properly documented changes.
  • The BondWave PMP Oversight UI assists in post-trade PMP and Best Execution Review and Reporting.
  • BondWave’s PMP Oversight UI enables exception review of PMP calculations and permits client intervention and adjustment with accompanying approval and documentation workflow.
  • BondWave’s PMP Oversight UI archives all PMP calculations, including PMP values calculated at each Level and Step in the Waterfall. This data is archived and readily retrievable by clients for 7 years. This UI supports regulatory inquires, best execution reviews, PMP data mining, and management reports.

Keep on reading: