The push towards MiFID II in January 2018 continues and with it more venues have opted to pursue strategies and offerings that help their respective customers prepare for the passage of the legislation.
Bloomberg and Bats Europe have become the latest groups to embark on such a strategy, teaming up to provide Bloomberg customers with the ability to utilize their respective Approved Publication Arrangements (APA), meeting MiFID II reporting obligations.
Supply and Demand
The effort is part of an industry-wide development that will see groups of all size recalibrating parts of their operations to comply with MiFID II regulation. As a byproduct of this, market participants are poised to face a steep increase of reporting tasks to manage, including an uptick on the price of firm quotes and executed transactions.
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Given these headwinds, Bloomberg and Bats Europe have teamed up, forming a joint initiative to enable the ability to report all asset classes across one comprehensive feed directly through Bloomberg’s Regulatory Hub (RHUB). The facilitation of RHUB will also help offer a wide range of services for clients, including processing, enrichment and validation of client’s data, determination of whether reporting is needed and automatic distribution of required reports.
By extension, RHUB clients will be able to use the Bats APA to satisfy equity and ‘equity-like’ trade reporting requirements and the Bloomberg APA for all other asset classes. The partnership is important as this will help enable firms to comply with their reporting obligations requirements while also effectively managing data reconciliation without having to integrate with multiple systems, traditionally an issue in the past.
According to Alejandro Perez, Global Head of Post-Trade Solutions, Bloomberg, in a statement on the collaboration, “We are pleased to be working with Bats Europe, whose well-established position in equity reporting will complement Bloomberg’s expertise in providing workflow solutions across the non-equity asset classes. Our Regulatory Hub is designed to help clients fulfil their reporting requirements, while providing a single data entry point into our integrated, MiFID II solutions.”
“We believe this collaboration with Bloomberg will provide a simple, effective way for market participants to fulfil their range of trade reporting obligations under MiFID II. With the new reporting regulations coming into effect in less than nine months, we know that firms are looking for easy-to-implement solutions to meet these regulatory requirements. We believe this offering with Bloomberg will help streamline MiFID II preparations for many market participants,” explained Jerry Avenell, Co-Head of Sales at Bats Europe.