K & K G L O B A L C O N S U LT I N G
CROSS ASSET RESEARCH
Trade and transaction
reporting
The new reporting requirements under MiFID II has been listed as the number
one painful challenge for the buy side. Voice and chat price negotiations
are unlikely to continue the same way as under MiFID I as you now need
most instruments time stamped and reported in a timely manner.
This will make the biggest impact on the fixed income trading
side. Foreign exchange traders consider moving most of their
options trading to venues.
Due to various reasons, such as lacking order
management system capabilities and required Fix
updates, quite a few buy side will rely on their MTF
and systematic internaliser partnerships for
reporting. Best practice for any global trading
desk is still to have at least one direct ARM
and APA relationship so you don’t need
to exclude trading with a counterparty
who doesn’t have their own reporting
capabilities. While many buy-side traders
are under tough pressure to resolve these
reporting challenges, regulators and
buy-side associations in France, Germany
and Sweden have given many asset
management firms an exemption so they
are not obliged to deliver transaction
reporting.
10
www.buysideintel.com
Winter 2017