What is the challenge?
With MiFID II in place, market players, trading platform providers and related parties must publish pre- and post-trade data, and report all applicable transactions to regulators and APAs. This will need to be done within prescribed timelines.
MiFID II brings a whole new set of market data publication requirements to both trading venues and investment firms.
As transparency requirements move into the OTC space, there is a huge increase in instrument coverage, both in number and asset type. Inevitably, the challenges are around what needs to be published, when and by whom. With such a profound change to the amount of data available to the market, there are bound to be impacts.
To successfully navigate this new environment, sales desks and traders will need access to both up-to-date, real-time market data and comprehensive instrument reference data.
What is Thomson Reuters doing to help?
We provide the ability to publish pre- and post-trade data and reports in near real-time via an APA to support your trade reporting requirements.
Ideally, the publication of pre- and post-trade data could be done by utilizing an existing infrastructure capability. To this effect, we have enhanced our market leading Thomson Reuters Enterprise Platform (TREP) so that it captures the necessary quote and trade data, and publishes these to the designated APA of choice.
Moreover, we are committed to bringing together as many of the new data sources as practical, whether new systematic internaliser (SI) quotes, OTC quotes and trade reports from APAs, new trading venues, or just new transparency data from existing markets.
We will also provide access to a pre- and post-trade publication service for bonds, structured finance products, derivatives and emission allowances. The APA (in partnership with Tradeweb) will be designed to ease publication by incorporating deferral and waiver rules into the platform.
This will ensure only appropriate quotes and trades are published at the right time.
Because MiFID II requires SIs to demonstrate clear transparency for their own-account trading – to enable investors to know that they benefit from execution that equals or betters that available from public venues – we provide the key data infrastructure and analytics to support transparency through our line of unrivalled solutions.