Boat Services and London Stock Exchange’s TRADEcho service opens its innovative open access Smart Report Router (SRR) bringing choice to the market place.
MiFID II brings many challenges to buy and sell-side investment firms, not least, the requirement to publish trades to the market as close to real time as possible. The Smart Report Router determines if and when the buy or sell side counterparty should publish the trade, and where there is a requirement it routes that trade to an Approved Publication Arrangement (APA) of choice for publication.
The SRR is APA agnostic allowing firms to use an alternate APA to make the trade public. The ability to smart route trade reports to different APAs provides firms with flexibility and reduces the cost of connecting directly to multiple APAs.
The SRR’s flexibility extends to its configuration; this includes the ability to provide ‘Assisted Reporting’ by which a firm can facilitate reporting on behalf of its counterparty/clients.
Testing of the SRR is now available to clients in the CDS (Customer Development Service) environment of London Stock Exchange. Additional functionality will be added to the service through 2017 in response to client demands and regulatory guidance helping clients fully satisfy their MiFID II post-trade transparency requirements.
“We are big proponents of open access platforms and the SRR underlines this by providing real choice,“ says Alastair Goodwin, Head of Business Development at Boat Services. “The flexibility for our clients to smart report route to our competitors’ APA offerings underlines the confidence we have in our product and is a great example of a service being built to meet our clients’ requirements. This is a major challenge market participants face in the trade transparency space, we have been asked for and are delivering a resilient, compliant and flexible solution.”
“This new SSR tool provides customers with choice and flexibility, demonstrating our commitment to an open access approach for the benefit of the market as a whole,” says Brian Schwieger, Global Head of Equities Product, London Stock Exchange. “We will continue to add functionality to our service in 2017 in response to customer demand, to provide a comprehensive reporting solution ahead of the new reporting requirements under MiFID II.”
TRADEcho is a Pan-European, multi-asset class MiFID II transparency service for financial firms, offered jointly by London Stock Exchange and Boat Services. The two companies currently manage a substantial share of firms’ MiFID trade reporting. By combining their existing trade reporting services, the partnership will offer the breadth and quality of service needed to help financial firms efficiently comply with their pre- and post-trade transparency obligations in an increasingly complex regulatory landscape.