Spanish exchange Bolsas y Mercados Españoles (BME) has adapted its Fixed Income market to allow market participants to meet post-trade transparency requirements mandated by the Markets in Financial Instruments Directive II (MiFID II).

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The new legal framework is an extension of BME’s integrated solutions for regulatory-compliant fixed income trading and reporting. It streamlines the migration of bond markets to a regulated venue, with greater information on each transaction and enhanced powers for supervisors.

The bourse said that securities listed on Europe’s key bond markets – including Germany or Italy – will be added to its fixed income market and will be grouped together with all securities admitted to trading on the BME’s market.

The BME initiative will also provide an illiquid bond segment with an effective mechanism for publishing details of trades as it offers the option to operate based on expressions of interest. Once the transaction is closed, BME’s Fixed Income market will send confirmation to the client then combine all regulatory elements through a flexible mechanism that takes care of the required disclosure functions under MiFID II.

The implementation of post-trade transparency rules under MiFID II requires real-time public reporting of detailed information for the majority of trades, and in a wide range of asset classes. Transactions executed on trading venues can be reported by that venue, while transactions executed over-the-counter (OTC) will need to be reported by a counterparty to the trade using an APA.

Jorge Yzaguirre, Markets Director of BME, commented: “BME is prepared to offer market members and their clients the routing, trading and trade reporting services to ensure the best compliance with MiFID II in the area of Fixed Income.”