LSEG teams up with Boat to launch European trade reporting platform

Jun 7th, 2016 | By | Category: ETF and Index News

London Stock Exchange plc and service platform Boat Services have come together to launch a trade reporting service that is intended to be the European platform of choice for trade reporting. TRADEcho will cover all pre- and post- trade reporting services and is launched on the back of demand amid looming regulation in the form of MiFID II.

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LSEG teams up with Boat Services to launch European trade reporting platform TRADEcho

MiFID II, which is due to come into force in 2018, requires multi asset trade reporting. TRADEcho, due to be launched in the first quarter of next year, will start by covering equities and fixed income, and is intended to provide a single, multi-asset, pan-European reporting solution to help customers meet all of their new trade reporting obligations.

MiFID II looks at how and where derivatives can be traded and is also aimed at managing possible conflicts of interest among financial advisers. It requires pre- and post- trade transparency on depository receipts and exchange traded funds (ETFs), certificates, bonds, structured finance products, and emission allowances and derivatives that are admitted to trading. This was previously only required on shares. Pre-trade transparency will mean that, among other things, public bids, offer prices and depth of trading will have to be disclosed. Post-trade transparency requires prices, volume and time of transaction to be made available.

The rules impacting ETFs include mandatory trade reporting for OTC trades and a consolidated tape, which is an electronic program providing real-time data on volume and prices for exchange traded securities

The new platform will offer customers a more efficient, single trade reporting venue that complements LSEG’s T+1 MiFID and EMIR transaction reporting services, offered through UnaVista.  [T+1 is the time scale required for settlement of a trade and means transaction +1 day settled.]

Nicolas Bertrand, Head of Equity and Derivatives Markets, LSEG said: “TRADEcho aims to be the platform of choice for trade reporting in Europe and will start by covering equities and fixed income. Responding to demand from customers, this partnership delivers with exceptional combined technical and compliance expertise, a comprehensive reporting solution to market quickly, ahead of new reporting requirements under MiFID II.”

Jamie Khurshid, CEO, Boat Services added: “TRADEcho is the culmination of almost a decade of experience from Boat and the London Stock Exchange. We have brought together the two most significant regulatory reporting and transparency solutions in operation since MiFID was introduced in 2007.

“Real-time regulatory reporting is our core business, we are the industry experts, and through our partnership we have a wealth of regulatory, technical and trading expertise between us.  This is why, when we go live with our MiFID II Multi asset-class APA solution, we will without a doubt be the premier destination for financial firms to not only meet their trade reporting obligations but exceed them with our additional services.”

Under the terms of the partnership, London Stock Exchange will host and operate TRADEcho’s new reporting service. Boat Services will be responsible for Business development and marketing.

TRADEcho’s key services include:

  • Trade Reporting: TRADEcho supports the new requirements of investment firms and trading venues for real time OTC trade reporting
  • SI Quoting: TRADEcho will publish quotes via London Stock Exchange market data feeds, market data vendors and the service’s portal as well as offer white labelled portals to SIs, who will be able to manage client access to the portal
  • On exchange, off book: TRADEcho provides London Stock Exchange member firms post-trade reporting services for on-exchange trades, to help customers manage investment mandates, counterparty risk through default rules and buy-in rules
  • Cleared model: TRADEcho will provide a sophisticated trade validation and risk management tool to allow trade reports to be flagged for onward routing to a CCP. This will facilitate settlement and margin savings through netting with order book trades
  • New multi-service web portal: TRADEcho will operate via a new web-based portal supporting the above services as well as providing reference data
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