FCA Greenlights More OTFs, MTFs in time for MiFID II

In other MiFID II FinTech briefs, Charles River is working with ICE Data Services, IHS Markit is strengthening trade reporting and Thomson Reuters is introducing e-learning courses on MiFID II compliance.

BGC, Integral Get FCA Approvals

Just in time for the start of MiFID II, the British Financial Conduct Authority (FCA) has approved that BGC Brokers LP, GFI Brokers Ltd., GFI Securities Ltd. Each can operate an organized trading facility (OTF) and Sunrise Brokers According to official information, a multilateral trading facility (MTF) via GFI Brokers Ltd. and GFI Securities Ltd.

In addition, the French Autorité des Marchés Financiers (AMF) has approved another OTF via Aurel BGC SAS, the authorities continue.

The permits help the BGC Group and its corporate family to offer “considerable flexibility” in the choice of venues and methods of execution.

In a similar action, the FCA also authorized the currency and money market provider Integral to operate an MTF that is to be integrated into Integral’s workflow products – according to official information BankFX, InvestorFX, MarginFX.

Charles River Adds CEP Support from ICE Data Services

Investment systems provider Charles River is looking to expand support for MiFID II by adding Continuously Evaluated Pricing (CEP) from ICE Data Services to help organizations meet best execution requirements.

According to official information, Charles River will integrate ICE Data Services’ CEP with the Charles River Investment Management solution (Charles River IMS). ICE Data Services is part of the Intercontinental Exchange (ICE) complex of trading venues, including the NYSE.

CEP support provides “independent trade-by-trade measurement of price quotes” that portfolio managers and fixed income traders can use to identify potential trading opportunities and assist fund managers, traders and compliance officers in their efforts to meet their MiFID obligations II, say officials.

“By integrating ICE’s CEP, Charles River is giving portfolio managers a more realistic set of offerings to help them make better decisions and meet the more stringent requirements of MiFID II,” said Tim Kelly, director of product management at Charles River. “With Charles River’s significant R&D investment, we are confident that our solution will enable customers to meet their MiFID II obligations.”

CEP’s real-time capabilities play “an important role in determining pre-trade pricing and post-trade quality analysis in bond markets,” said Rob Haddad, director of product strategy and innovation at ICE Data Services, in a statement.

ICE Data Services’ CEP offering provides a range of bond ratings for more than 2.4 million instruments in global corporate, emerging, money and sovereign bonds, as well as government bonds, US agencies, US municipal bonds and MBS pass-throughs. TBA mortgages and bank loans, officials say.

IHS Markit links thinkFolio on TRADEcho for MiFID II Trade Reporting

Financial market data provider IHS Markit has linked its investment management platform thinkFolio to TRADEcho’s Approved Publication Arrangement (APA), which will provide clients with a trade reporting solution for MiFID II.

In accordance with MiFID II rules that move trade reporting for key instruments to the buy side, trading companies using thinkFolio as their order management and portfolio modeling system can now enter into an agreement with TRADEcho to enable real-time trade reporting to the TRADEcho APA and Using the TRADEcho Smart Report Router to report to other APAs, ”officials say.

In addition, IHS Markit introduced a new layer in thinkFolio that allows interfaces to be changed regardless of the main platform. This means customers don’t have to upgrade every time there are changes to regulations or when they want to connect to different venues. According to official information, the thinkFolio offering can connect to more than 20 MiFID II-affected venues.

“Over the past year we have worked diligently with customers and partners like TRADEcho to adapt to the ever-changing regulatory landscape,” said Spiros Giannaros, managing director and global head of thinkFolio and enterprise data management at IHS Markit.

Thomson Reuters offers e-learning courses on MiFID II compliance

Thomson Reuters has added a MiFID II compliance training course to its e-learning capabilities to “give companies a clear and precise understanding of the European Securities and Markets Authority (ESMA) regulatory framework,” said the vendors’ representatives.

“The Thomson Reuters MiFID II compliance training suite illustrates the complexity of the legislation and provides a precise overview of what companies should consider when it comes to ongoing MiFID II compliance,” said the provider. “Under MiFID II regulations, trading venues, approved reporting mechanisms, organized trading facilities, investment firms and companies on the sell side each have significant reporting obligations to both ESMA and their local regulator. The aim of MiFID II is to reduce the risks associated with what was previously considered to be easy regulation and to ensure that investors are treated fairly. “

The course is aimed at institutions that “do not have a full understanding of all MiFID II obligations and therefore do not yet have the most effective compliance processes in place,” said Stuart Martin, managing director of risk information and learning services at Thomson Reuters, in a statement. “Our MiFID II e-learning courses deal with the many questions that we hear repeatedly from our customers and that are not only relevant to the companies themselves, but also apply to the individual employees of these companies.”

The e-learning courses cover the following four main areas:

  • MiFID II for the buy-side: This course helps buy-side employees to recognize the need for “better investor protection, increased market transparency and integrity, and the effects on known market structures. Staff learn the implications for core categories such as best execution, the definition of different trading venues and the role of a systematic internaliser. “
  • MiFID II for the sales side: This course “trains employees working in sell-side organizations and positions by letting teams know what to do differently with regard to trading obligations, high-frequency trading, or market making. It lists the various obligations related to trade, transaction and position reporting, ”officials say.
  • The MiFID II market structure: This course focuses on “the types of trading venues permitted after MiFID II came into force and the most important differences in the operation of these trading venues”, according to the authorities. “Learners will be able to identify the impact of MiFID II on market transparency and integrity and better understand systematic internalisers and dark pool trading.”
  • And the MiFID II International Reach course: This course explains the far-reaching effects of MiFID II beyond the European Union on trade, regulation and governance. “International companies of all kinds that are active in the financial markets must be aware of these changes and their effects on their business and the markets,” said the provider.

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