Regulatory approval has been granted by UK’s Financial Conduct Authority (FCA) enabling the trade reporting service TRADEcho to enter the final phases of preparation for MiFID II. The TRADEcho service is provided in partnership between Cinnober’s subsidiary Boat Services Ltd and the London Stock Exchange Group.
The approval to be authorized as an APA (approved publication arrangement) means that TRADEcho can publish post-trade transparency reports on behalf of investment firms to help them meet their reporting obligations under the European Union’s Markets in Financial Directive II (MiFID II), which goes into effect in January of 2018. Today, more than 350 customers in total have committed to use TRADEcho for their MiFID II reporting needs.
“The new regulation will have a major impact on investment firms globally. TRADEcho is well positioned for MiFID II and ready to support the industry,” says Jamie Khurshid, CEO of Boat Services Ltd, the fully owned subsidiary of Cinnober. “We are unique in having over a decade of experience in providing trade reporting services, having reported over half a billion trades with a value in the region of £50 tn and published 18bn quotes. It is clear that the market sees the value in our services and are looking for a provider with experience in regulatory reporting. Our sales efforts and customer dialogues will now be intensified during the second half of 2017.”
Over the past months, several Electronic, Order and Portfolio Management System vendors have formalised partnerships with TRADEcho to automate their MiFID II trade reporting services. Under these partnerships investment firms, with the vendor management systems in place, can use TRADEcho as an APA to report trades and access TRADEcho’s unique Smart Report Router (SRR) to determine trade reporting eligibility.
“These partnerships are of great importance to us and further increase our market coverage,” Khurshid continues. “In total, we now have 26 different vendors connected to TRADEcho, with several more expected by the end of the year. They are serving several hundreds of firms through their offerings, in which we now are included. Exactly how many of these end-customers will have an obligation to report trades under MiFID II remains to be seen, but one thing is certain, the vendors’ integration with TRADEcho will bring new customers and help us support the market further with our market leading reporting services.”
The acquisition and further development of the reporting service Boat has been an important step in leading exchange technology supplier Cinnober’s ambition to broaden the addressable market to include e.g. banks and brokers. Large parts of Cinnober’s development costs for the establishment of the TRADEcho offering have now been incurred. The effects of customer inflow will be evident once the new regulation is introduced.
“Our engagment in Boat and the belonging TRADEcho offering is to be seen as an important investment in the future and we are encouraged by the positive development during recent months,” says Veronica Augustsson, CEO of Cinnober. “Successful new subsidiaries, together with our traditional ongoing business where Brazilian B3 earlier this week released over 6 billion USD in collateral by the introduction of superior clearing and technology for aditional asset classes, will certainly help us build an impressive company group with a broader target group”.
Cinnober has since its inception been focused on exchange and clearing technology, developed for leading exchanges and clearinghouses globally. The company is to broaden its target group by the establishment of subsidiaries with adapted and highly competitive technology offerings. Today three such subsidiaries are established within areas such as trade reporting, client clearing and trade surveillance.
For further information or discussion, please contact:
Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance. Cinnober’s customers include Australian Securities Exchange, B3 (former BM&FBOVESPA), Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand. For additional information, please visit www.cinnober.com
About Boat Services
Boat Services Ltd was founded in 2007 in response to the regulatory pressures introduced when MiFID was implemented. Boat offered MTFs, SIs and investment firms an easy and cost-efficient way to comply with the new transparency obligations. Ever since, Boat has operated with exceptional uptime, and is the trade data monitor (TDM) with the most comprehensive offering of reportable instruments, including more than 10,000 stocks and ETFs across Europe, the Swiss and Russian markets.
After acquisition by Cinnober in 2014, Boat Services Ltd expanded its product offerings to include TRADEcho and LBMA-i for finance and Boat Oasis for insurance. For further information, please visit www.theboatplatform.com
London Stock Exchange
TRADEcho is brought to you in partnership with the London Stock Exchange.