[ M I F I D
Beyond best execution, pre- and post-trade transpar-
ency represents a major component of MiFID II. With
the introduction of approved publication arrange-
ments (APAs) and approved reporting mechanisms
(ARMs), a far greater volume of trade data will be
reported and published. APAs will make data publicly
available on both a pre- and post-trade basis, and the
regulation will drive a significant increase in reporting
in comparison to current requirements.
The transparency rules are wide-ranging and
complex, and it is incumbent upon firms to determine
which trades must be reported and which party must
fulfil the reporting obligation. When undertaking ac-
tivity on a European venue, it is the venue that will be
responsible for publication, whereas all other activity
must be published via an APA. Firms will therefore
need to fully understand the trade process to ensure
the appropriate party reports the trade to a publication
I I
|
F X ]
venue.
The regulation also formalises
the transaction reporting require-
ments, the principle purpose of
which is to provide competent
“It could be very tight to be live in
time for January.”
PETE EGGLESTON, FOUNDER AND DIRECTOR, BESTX
authorities with the information
needed to detect market abuse.
Both trade reporting via APAs and
transaction reporting via ARMs
will pose major systems challeng-
Issue 54
TheTradeNews.com
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