[ A D V E R T O R I A L ]
equity and equity like only, to also include
fixed income and derivatives
• Enhanced use of the systematic internalis-
er regime
• Defined rules hierarchy around who has
the reporting obligation
• As a result of this, trade reporting changes
from being purely a sell-side brokerage
function, to something that will impact all
market participants.
TT: How do the rules differ according to
instrument or asset class?
PL: The rules only differ in terms of time be-
fore the trades have to be reported, with one
minute for equities and within 15 minutes for
other asset classes. This said, these changes
will affect fixed income market participants
in a profound way. It will give people more
transparency to the fixed income market,
and will change how people understand
the market and how one can measure best
execution. Ultimately, this will impact how
trading decisions are made. In general, with
more data and transparency, market partic-
ipants can get a better idea of the implicit
cost of a trade.
Fixed income is still very much an OTC
market, quotes driven rather than orders
driven, and less electronic than let’s say
equities. Market participants have a lot of
work to do, both on the buy- and sell-side, to
ensure they capture all trades in an electron-
ic environment and recording the time stamp
of the execution, which will determine when
this needs to be reported. This market is
going through a profound transformation,
driven by electronification, data and trans-
parency.
TT: What can firms do to help ease the burden
of trade transparency requirements?
PL: TRADEcho is the partnership between
London Stock Exchange and Boat Services
Ltd; we are the European one-stop shop
for pre- and post-trade transparency. We
are very experienced in this space, having a
solid record of trade reporting, for hundreds
of firms, without any outages or issues. We
“The most interesting thing we have
created is something that solves the real
issue in the market.”
have a unique understanding of transparency
regulation, how it will impact all market par-
ticipants and how to create specific reporting
solutions for those participants.
In terms of pre-trade transparency, we
offer a solution for systematic internalisers,
both around determination and quoting. On
the post-trade side, we offer a market leading
APA solution for trade publication. Here, we
will cover every instrument that is captured
by trade transparency regulation in Europe.
Maybe the most interesting thing we have
created is something that solves the real
issue in the market, the Smart Report Router
(SRR). This allows an investment firm to
send all their trades to our router, we then
measure these against relevant legislation,
define reporting obligations, and will publish
the trades in line with our clients instruc-
tions to the APA of their choice – either
TRADEcho or another provider. This is a
unique value we provide to the market by
solving a problem that many firms are strug-
gling with.
For more information go to www.TRADEcho.com.
Issue 51
TheTradeNews.com
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