TTMzero: FIAP - Product Information

Streamlining operational processes

Ensuring the Financial Instruments Automation Platform (FIAP) adapts to your workflows is key to a good onboarding. To ensure this, TTMero provides a personalised approach, configuring unique process flows and document templates for each client we onboard onto the FIAP platform. This customisation ensures fully automated business workflows tailored to your specific issuance process. FIAP

Efficient and seamless issuance management

Our services encompass the pre-issuance phase, involving tasks such as defining the data model for various product types, configuring document templates, and specifying MiFID target market classifications. During the actual issuance process, FIAP seamlessly manages multiple parallel workflows, including the creation of Final Terms, computation of PRIIPs key figures, and performance scenarios, MiFID target market assignment and validation checks, as well as cost and risk calculations. Building on this input, FIAP generates PRIIPs KIDs, systematically storing both data and documents in secured databases and distributing them via an interface network to third parties and data hubs for further processing.

Daily monitoring - throughout the entire life-cycle

Following the issuance, TTMzero monitors your product and the PRIIPs key figures on a daily basis: FIAP re-computes MiFID II costs and risks and whenever any significant changes are detected that necessitate a new KID document, the platform automatically creates a new KID and distributes the document as well as the product data to the relevant third parties.

Directly connected to multiple third parties

TTMzero has extensive network connections with supervisory authorities, market data providers, stock exchanges, and custodians allowing FIAP to support you in seamlessly filing your product with regulators, listing them with exchanges, and efficiently distributing data and documents to third parties. Experience the efficiency and ease of optimised business processes with Financial Instruments Automation Platform (FIAP).

Rigorous regulatory compliance

FIAP offers seamless compliance through automated document management, meeting PRIIPs and MiFID II regulations. The platform is developed and maintained by an experienced team of financial engineers, experts in valuation & risk management, and with backgrounds in Structured Products and OTC derivatives. Their profound expertise is at the heart of TTMzero's sophisticated calculation engine that computes highly reliable key figures, performance scenarios, cost transparency data and risk indicators, all required under the PRIIPs and MiFID II regulations and the associated Regulatory Technical Standards (RTS) requirements. Read more below or back to the Table of Contents

Adherence to PRIIPs regulation

The calculation of PRIIPs Key Figures as offered by our FIAP platform includes the following figures:

Value at Risk Equivalent Volatility
Market Risk Measure
Credit Risk Measure
Summary Risk Indicator
Expected value and yield for a simulated investment of 10,000 EUR for each of the following performance scenarios for both the recommended holding period (RHP) and maturity-dependent for interim holding periods in accordance with the applicable PRIIPs regulation:
1. Favourable scenario
2. Moderate scenario
3. Unfavourable scenario
4. Stress scenario
Total costs (expressed as an absolute amount and reduction in yield) for each holding period to be delivered as specified above.
Cost break-down for the Recommended Holding Period:
1. One-Off costs:
  1. entry costs
  2. exit costs
2. Recurring costs
  1. portfolio transaction costs
  2. other ongoing costs

Adherence to the MiFID II product governance requirements

Under MiFID II, manufacturers must identify the potential target market for every financial instrument and continuously ensure compliance for each financial instrument they offer. Leveraging FIAP supports your in staying compliant.

The FIAP platform supports MiFID II compliance by enabling manufacturers to:

Define and apply target market categories to each product.
Create validation rules based on MiFID key figures.
Generate response files with allocated MiFID target market information for distribution to third parties.
Calculate and monitor ex-ante and ex-post costs, including entry, exit, and ongoing costs.

FIAP also facilitates automated monitoring of validation rule violations, alerting customers through the MiFID dashboard and email notifications if violations occur. Manufacturers can use the FIAP dashboard for audit-proof exception handling.

Adherence to regulatory-compliant KID production

KIDs (Key Information Documents) are produced fully automated via the FIAP platform. This includes the following services:

Set up of KID document templates in the desired languages according to the sample KID document provided by the customer or based on the official document template for KIDs as laid out in the Regulatory Technical Standards (RTS) in the respective language.
Automated PRIIPs KID production in the form of unmodifiable PDF files, one for each product and language.
Cloud storage and publication of the latest KID version via static URL.
Daily monitoring of the relevant PRIIPs key figures and performance scenarios to identify “significant changes” and trigger the creation of KID updates, if required.
Audit-proof archiving for KID pdf files.

All KID documents produced by FIAP are at all times compliant with the Regulatory Technical Standards (RTS).

Accelerated market launch of new products

In the dynamic world of structured products, immediate adaptation to market shifts and investor needs is the cornerstone of competitiveness. While conventional issuance methods often defer product launches to the next trading day, TTMzero, in partnership with Europe's premier numbering agency, WM Datenservice, has integrated intraday issuance workflows into FIAP.

The Intraday issuance service follows a two-step approach:

Creating preliminary new products - so-called “ISIN shells” - with incomplete product data and keeping them “in storage.”
Launching the actual product by completing the outstanding attributes on the issuance day.

FIAP offers a management solution for the rule-based maintenance of an ISIN shell repository for intraday issuances via a web frontend. ISIN shells are automatically created with the required profiles and quantities based on rules defined by the issuer.

The service always keeps the inventory of ISIN shells ready for issuance in accordance with the issuer rules by deleting expired ISIN shells and re-filling the inventory after ISIN shells are consumed for intraday issues.

User-friendly KID Template Editor

TTMzero’s KID Template Editor is an easy-to-use web frontend that aims to provide user-friendly functionalities to generate and modify document templates for Key Information Documents (KIDs).

It is directly connected to TTMzero’s KID generator service which contains all functionalities for the automated generation of KIDs from approved templates, including the necessary PRIIPs key figure calculations.

TTMzero’s KID Template Editor allows users to independently create new KID templates in multiple languages and to change existing templates without the involvement of TTMzero’s developers.

The web-based application provides default KID templates for all 24 languages that are in scope for the PRIIPs regulation, plus Norwegian.

Bulgarian*
Croatian
Czech
Danish
Dutch
English
Estonian
Finnish

French
German
Greek
Hungarian*
Irish*
Italian
Latvian*
Lithuanian*
Maltese*

Norwegian
Polish
Portuguese
Romanian
Slovak
Slovenian
Spanish
Swedish

Streamlining document creation with multilingual support

The KID Template Editor offers a legally compliant document skeleton for each language, enabling clients to focus on adding descriptive content. This skeleton includes the KID document's structure, PRIIPs key figures, and wording in line with the Regulatory Technical Standards (RTS). Users producing KIDs in several languages therefore benefit from reduced complexity due to KID templates compliant with current regulations.

Robust and audit-proof template management

In the KID Template Editor, clients can personalise templates to reflect their corporate identity, incorporating specific logos, fonts, and colours. The template creation and modification process is governed by a strict four-eyes principle (Maker, Checker, and Starter roles), ensuring a reliable audit trail and collaborative features.

Additionally, the Templete Editor keeps detailed logs of all template modifications, providing a thorough history of each template's versions for auditing purposes. The Template Editor allows editing of one document template or multi-document editing of different templates in one editing step. The ability to preview and download documents as PDF files adds to the convenience.

Easy and user-friendly editing and control processes

Four-eyes-principle guaranteed

All changes are logged and thus audit-proof

Multi-template editing supported

Automated notification functions

All change requests are archived and can be accessed at any time

Reduced complexity for producing KIDs in several languages

25 languages supported

Less legal counseling required due to provision of KID template skeletons based on the European Commission’s wording

New payoff types can easily be integrated into the web interface

User roles can be assigned individually for each KID template

Each manufacturer has individual templates specific for their products and corporate design

Diligent life-cycle management

After a product is issued, it needs diligent maintenance for the issuer to be compliant with regulations during the lifetime of the product.

FIAP monitors and recalculates PRIIPs key figures as well as MiFID II cost and risk figures on a daily basis. If “significant changes” are observed, this triggeres a new KID document. Upon this action, the updated data and documents are automatically distributed to the relevant third parties via the connected data hubs. This guarantees that issuers always publish the current KIDs document and ensures you stay compliant with regulations.

Also, some instruments are subject to certain life-cycle events, such as corporate actions or knock-outs that require an update of all related data and documents, which then have to be distributed to all necessary parties.

FIAP users can upload life-cycle events and thereby trigger the process for the subsequent automated handling, which can - among other steps - include the following:

Sending updated instrument data to third parties such as data vendors, exchanges, regulatory authorities, etc.
Updating MIFID II Cost Transparency Data
Updating PRIIPs Performance Scenarios and Summary Risk Indicators
Updating and distributing documents (e.g. PRIIPS KIDs, Termsheets, etc.)

Life-cycle events that trigger subsequent processing on FIAP are:

Corporate actions such as stock splits, mergers and spin-offs
Delistings
Bid only
Knockouts
Barrier breaches
Expiries

PRIIPs and MiFID II compliance

Regulatory-compliant documents.

Fully automated high-performance processes

Integrated routines and automation workflows for all pre- to post-issuance processes.

Reduction in Costs

Reduced Complexity with just one solution. No need to maintain an own infrastructure.

Fewer operational risks

Audit proof processes/audit trail/Monitoring by TTMzero.

Fast time-to-market

Ready-made processes and interfaces that can be put into operation immediately.

Customisable and highly scalable

Modular system that allows for scalability. Choose and pay only the modular components you need.

Onboarding on TTMzero’s business-ready platform resulted in a very short time to market. TTMzero’s broad network of third-party connections to regulators, custodians, and data vendors provided all the essential components for building a fully automated production chain from scratch.

Dennis Puschmann, Product Manager at Tradegate

TTMzero’s platform transforms the manufacturing of structured products, centralising issuance, regulatory compliance, and third party interfaces into a seamless one-stop solution.

Jan Hegermann, FIAP Product Owner

Manufacturers of structured products don’t need to operate their own infrastructure - we manage the entire issuance process of their product and beyond.

Simon Ullrich, Founder & Managing Partner at TTMzero

Welcome to FIAP product insights

TABLE OF CONTENTS

Streamlining operational processes

TTMzero's extensive network of third parties includes:

Rigorous regulatory compliance

Adherence to PRIIPs regulation

Adherence to the MiFID II product governance requirements

Adherence to regulatory-compliant KID production

Accelerated market launch of new products

Customisable modular microservice system

As our client, you can choose from our following services:

These are the tools and services we offer:

User-friendly KID Template Editor

All PRIIPS languages supported

Streamlining document creation with multilingual support

Robust and audit-proof template management

Workflows of the KID Template Editor

Key benefits of the KID Template Editor

Diligent life-cycle management

"With FIAP's various microservices, interfaces, and adapters to third-parties, the platform facilitates the completion of all tasks throughout the entire issuance process, encompassing both pre- and post-issuance functionalities."

Key stats

Key benefits of FIAP

Outline of FIAP’s output and workflows

Explore TTMzero’s offering

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