Ahead of the implementation of the Markets in Financial Instruments Directive (MiFID II), Deutsche Börse has partnered with European Trade Repository, REGIS-TR, to help clients meet a cascade of regulatory requirements under the new legislation.
Earlier today, the European Securities and Markets Authority (ESMA) published its final iteration of its technical standards (TS) on a number of integral components of post-crisis financial regulation, i.e. MiFID II, the Market Abuse Regulation (MAR) and the Central Securities Depositories Regulation (CSDR).
Several financial services providers, as well as ESMA, have taken measures to help articulate and clarify precisely how the new legislation will come into effect for market participants, market infrastructures and national supervisors, a point of confusion earlier for a number of individuals and firms that were seeking clarity on the compliance rules.
REGIS-TR is jointly run by Deutsche Börse’s subsidiary Clearstream and Iberclear – the groups will lead a series of efforts to help clients meet MiFID II obligations ahead of the 2017 enforcement and passage.
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In particular, Deutsche Börse is offering clients two services, including the MiFID II Transaction Reporting Service. This service will help enable clients to submit the relevant data, such as executing trader and reason for transaction, to the national denominated authorities, which is reported via an authorized reporting mechanism (ARM) – alternatively, REGIS-TR will apply for ARM status and act as the ARM for Deutsche Börse.
Furthermore, Deutsche Börse’s MiFID II OTC Trade Reporting Service will help clients meet the litany of transparency requirements for over-the-counter (OTC) transactions under the new directive. Transactions under these requirements will see quality assurance and publication under an approved publication arrangement (APA).
According to Hauke Stars, a member of the Deutsche Börse Executive Board responsible for IT & Market Data + Services, in a recent statement on the partnership, “Deutsche Börse has already been offering reporting solutions for many years, including for EMIR and MiFID I. With our MiFID II services, we will now also support market participants in meeting challenges posed by the new regulation, from one source. With a global solution, we enable our clients to keep their costs in check – both acquisition costs as well as the costs of adapting to additional regulatory changes.”
“An integrated reporting offering makes perfect sense. Our services are highly complementary. As a licensed Trade Repository, REGIS-TR is already widely connected to the network of European national competent authorities and was one of the first Trade Repositories to be approved for EMIR. This combined with a mature MiFID I service and value added products and services on top means that together, REGIS-TR and Deutsche Börse are uniquely positioned to be the de facto European regulatory reporting hub. It is very important for our customers to have a trusted partner who can help them meet their regulatory obligations in an efficient and cost-effective manner,” added Elena Carnicero, CEO of REGIS-TR, in an accompanying statement.