With nearly six months to go until the passage of MiFID II regulations, groups continue to prepare for the sweeping new legislation that will come into force in January 2018. Ahead of this deadline, Bats Europe and Trax, a provider of regulatory reporting, trade matching and capital market data services, have teamed up to help market participants comply with upcoming post-trade transparency obligations under MiFID II.
MiFID II will redefine the regulatory playing field, implementing a number of new post-trade obligations and a litany of other reporting requirements. MiFID II will dictate a higher degree of transparency that is unprecedented in the industry, affecting both buy- and sell-side firms. While the first iteration of MiFID applied solely to equity markets, MiFID II will also extend its the core principles into ‘non-equity products,’ such as cash and derivative products in fixed income, foreign exchange (FX) and commodities.
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Trax, is a subsidiary of MarketAxess Holdings, Inc. and existing provider of multiple relevant reporting services. By partnering up with Bats Europe, the two groups will be enabling Trax Approved Publication Arrangement (APA) to direct equity trade reports to the Bats APA, part of an initiative to facilitate market participants; comply with MiFID II post-trade transparency obligations.
The support can be important for market participants, given the establishment of a link directly to Trax, and can help mitigate technical burdens via a single reporting connection. Moreover, the partnership will look to leverage increased flexibility in reporting designation through routing reports to either the cross-asset class Trax Approved Publication Arrangement (APA) or the Bats APA for equities.
Geoffroy Vander Linden, Head of Transparency Solutions, Trax, commented: “Trax has worked extensively with the regulators and our buy- and sell-side client community to build a comprehensive and intelligent transparency solution. It’s through this cross-industry collaboration that Trax and Bats Europe will develop a connection for equities trade reporting. I’m excited to be able to offer our buy- and sell-side clients even greater technical flexibility and a streamlined operational solution.”
“Market participants are looking for simple solutions to meet the new trade reporting requirements coming under MiFID II. By collaborating with Trax to provide their customers with streamlined access to the Bats APA for their equity reporting needs, we’re making it easier for firms to meet their regulatory requirements,” explained Jerry Avenell, Co-Head of Sales at Bats Europe.