Thomson Reuters has agreed to support Trax’s MiFID II regulatory reporting and Systematic Internaliser (SI) determination services.
Trax is a provider of capital market data, trade matching and regulatory reporting services to the global securities market. The company processes on average over 1 billion annual transactions on behalf of its community of over 600 entities including approximately 12 million fixed income transactions. It operates an Approved Publication Arrangement (APA) and Approved Reporting Mechanism (ARM) for MiFID II trade and transaction reporting in addition to providing support for other regulatory regimes.
As part of the deal, Thomson Reuters will provide reference data for Trax’s trade and transaction reporting services via its APA and ARM. In addition, it is also providing market data for Trax’s SI determination service, by leveraging real-time market data from Thomson Reuters to estimate the total market size at a per instrument or sub-asset class level.
Chris Smith, head of Trax, commented, “Although MiFID II implementation took place on 3rd January 2018, the industry is still confronted with impending regulatory obligations, including the start of the Systematic Internaliser regime.”
Under MiFID II regulations, investment firms have to determine whether they are a Systematic Internaliser (SI) or not. If their activity exceeds certain thresholds, placing them in the SI category, they face obligations under MiFID rules.
Trax’s SI determination service performs quarterly SI assessment by calculating a firm’s market share and provides a daily indication of a firm’s potential for becoming an SI per instrument ahead of the official assessment period.
This, in conjunction with its intelligent rules-based engine for regulatory reporting, enables financial firms to more easily meet their MiFID II reporting requirements.
“Our trusted market and reference data has been comprehensively upgraded for MiFID II, to power industry compliance and enable firms to benefit from all the market transparency data that is now available,” added Brennan Carley, global Head of Enterprise for the Financial & Risk business at Thomson Reuters.
“As the industry grapples with the SI regime, our mission is to make it easy for firms to access the trusted data they need to comply, including assessing in real time whether they may breach the SI thresholds for different instruments so they can adjust their trading strategies accordingly.”
Thomson Reuters previously launched a suite of MiFID II solutions to help its clients navigate MiFID II compliance, which included the addition of reference data and realtime data for APAs and MTFs, enhancements to its data analytics platform, Velocity Analytics, to support best execution compliance, as well as transaction cost analysis and systematic trading, an APA connectivity solution for trade reporting requirements, and a legal entity identifier (LEI) profiling solution.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
