MiFID II’s drive for greater transparency increases challenges around what needs to be published, when and by whom. What do firms need to know about an Approved Publication Arrangement (APA) for their data reporting?
MiFID II, which comes into force in January 2018, is set to bring a whole new set of market data publication requirements to both trading venues and investment firms.
As a key pillar in the move towards greater transparency, the directive requires that firms publish all pre- and post-trade data and reports in near real-time.
Those details need to be published via a trading venue or Approved Publication Arrangement.
A decade ago, MiFID I established these requirements for equities listed on EU regulated markets. MiFID II broadens them to include OTC instruments, such as bonds, structured finance products, derivatives and emission allowances.
Consider your APA needs
Many firms have already decided to use solutions like the Tradeweb APA to meet their MiFID II publishing requirements. There are various advantages, as it eliminates the need to invest time and resources into building your own APA.
Tradeweb APA ensures you’re always in compliance with thresholds, waivers, deferral management and Systematic Internaliser (SI) determinations.
It also makes publication easy and accurate by integrating all these rules into one platform, so that only appropriate quotes and trades will be published at the right time.
Tradeweb can also help you manage your deferrals strategically by controlling factors such as trade volume that allow you to hold back publication.
Deferrals can be given under certain conditions and allow publication to be delayed for two days or longer.
Complexity and potential risk
In order to have accurate and timely data to publish, firms need access to both up-to-date, real-time market data and comprehensive instrument reference data.
And because MiFID II covers far more assets than MiFID I, it raises the stakes in terms of complexity and potential risk. You have to know exactly what needs to be published, when and by whom.
We are already bringing together these new data sources, including new SI quotes, OTC quotes and trade reports from APAs, new trading venues and new transparency data from existing markets.
Again, you can benefit from our existing and market-leading infrastructure.
It includes evolving our Enterprise Platform, which captures the necessary quote and trade data, and then publishes that data to the designated APA.
MiFID II compliance platforms
MiFID II requires SIs to demonstrate clear transparency for their own account trading.
This enables 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 leading solutions.
Including the already-mentioned Tradeweb APA and Enterprise Platform, here is a list of our platforms that can help in achieving MiFID II compliance:
We have a full line of proven solutions already at work in the market that are well positioned to help you access the right data, and publish it in the right way and time.
We are here to answer your MiFID II questions and prepare you for the changes ahead.