10/05/2018

Systematic Internaliser services expand to include Client Tiering

At TRADEcho we aim to provide our clients with best-in-class MiFID II transparency services, and our pre-trade solutions are no different. With the Systematic Internaliser (SI) obligations under MiFID II coming into full force on 1st September 2018, our SI services can help firms ensure compliance. To achieve this, we offer two core SI services, SI Determination and SI Quoting. Client Tiering, a recent enhancement to our SI Quoting service, allows SIs to route their quotes to specific clients, giving ultimate control back to the SI.

SI Determination - Are you a SI?

Under MiFID II’s extension of the SI regime firms are responsible for assessing the volume and frequency of their trading activity in certain instruments, asset classes and issuers, to determine if they breach thresholds set by the regulator and subsequently become a SI.
TRADEcho’s SI Determination service helps firms assess this by carrying out the calculations required to ascertain if a firm is breaching the thresholds set by the regulators. TRADEcho has the ability to look at existing SRR clients’ historic data and aggregate it for the purposes of the frequent, systematic and substantial quantitative calculations. Firms not using the TRADEcho SRR service have the option of benefiting from the Determination calculation by submitting their historic trading data in a CSV file format, which TRADEcho will enrich with its reference data and aggregate for the quantitative calculations.

SI Quoting - Are you fulfilling your pre-trade transparency obligation as a SI?

SIs, regardless of whether they have opted in or have breached SI thresholds, are obligated to make a certain amount of pre-trade information available to the public. TRADEcho’s SI Quoting service provides firms with the determination engine to calculate if quotes qualify for a pre-trade waiver, and to publish their pre-trade quotes through the LSE-hosted platform in a timely manner. With tens of millions of quotes being published by TRADEcho every day, firms have the comfort of knowing they are using a resilient and widely used service that is hosted in London Stock Exchange data centres.
The new addition to the SI Quoting service gives clients the ability to stream certain quotes directly to their clients via our Client Tiering model. This gives SIs the ability to manage their clients in different tiers, and subsequently send quotes only relevant to those clients in each tier via private client portions of the TRADEcho Quotes website. This provides SIs with a new opportunity for advertising their SI offering and ensure their clients can easily recognise and act on quotes that are being streamed to them. SIs are given the option to only publish quotes to the public access site, to private client tiers, or to both, allowing for all regulatory interpretations and guidance
If you have further questions about how TRADEcho’s services can assist your firm in ensuring you are MiFID II compliant, please contact us on +44 (0)20 3866 9700 or contact@tradecho.com.

About TRADEcho

TRADEcho provides firms with the tools to meet their pre and post-trade reporting obligation under MiFID II and has extensive experience in providing world-class solutions that help firms comply in this increasingly complex regulatory landscape. TRADEcho was formed through a partnership between London Stock Exchange (LSE) and Simplitium (formerly Boat Services) to deliver compliant, simplified and cost effective reporting services for MiFID II. The services combine the strengths of Simplitium and LSE to form a team of industry, regulatory and technical experts. By combining the two existing reporting platforms and utilising the respective strengths of each firm, TRADEcho offers an unparalleled breadth and quality of service. The TRADEcho services include: SI Determination, SI Quoting, Smart Report Router, Trade Reporting (APA) and Assisted Reporting.