In accordance with MiFID II, Systematic Internalisers (SIs) are investment firms which, on an organised, frequent, systematic and substantial basis, execute client orders against proprietary capital outside a regulated market, MTF or OTF, without operating a multilateral system. The SI Regime mandates firms that breach certain trading thresholds or opt-in to the scheme, to provide pre-trade transparency on instruments they are an SI in. The level of pre-trade transparency required depends on various factors, including the liquidity of the instrument and the size of the quote. TRADEcho helps firms determine if they qualify as a SI and provides the tools required for quote publication.
Are you a Systematic Internaliser? An investment firm executing client orders against own proprietary capital on a frequent and systematic basis may be classified as an SI and will be obliged to provide public firm quotes. This is dictated by amount and frequency in which you are dealing as well as the liquidity and classification of the instruments traded. TRADEcho SI Determination Service helps firms calculate their status for each instrument and keeps then informed of their SI status.
TRADEcho supports the publication of SI quotes via LSE market data channels and on TRADEcho quotes. With TRADEcho's SI Quoting firms can validate their quotes and publish them via the LSE market data channels or the TRADEcho website.
MiFID II introduced the requirement for investment firms and venues to make trading activity public. The regulators aim to create a fair marketplace in which all participants have sufficient data to make informed investment decisions. Thus, trading venues and investment firms must publish details of transactions as near to real-time as technically possible; for Equity & Equity-like within 1 minute, and for Non-Equity within 15 minutes (reducing to 5 minutes from 2021). TRADEcho provides firms with the tools to indentify which trades they are obligated to report and the mechanism for publishing those trades.
TRADEcho’s Smart Report Router (SRR) determines if and when the buy or sell-side counterparty should publish a trade and, when there is a requirement, routes that trade to an APA. The SRR is APA agnostic which means that firms can use alternate or multiple APAs to make trades public. By using the SRR, instead of connecting directly to multiple APAs, firms achieve flexibility while managing costs.
TRADEcho operates as an Approved Publication Arrangement (APA), applying relevant deferrals to provide the market with a clear and concise tape of your trades. Trades are published across all asset classes in line with the regulatory reporting timeframes. Deferred publication may be authorised for certain trades that would expose liquidity providers to undue risk.
TRADEcho's Assisted Reporting allows brokers to submit ‘Assisted Reports’ on behalf of their buy-side clients. The service gives buy-side firm real-time visibility of their reporting while freeing up time and lowering connectivity costs. Reporting information is available for reconciliation and management. The service can be tailored to each broker’s trade reporting capabilities.
TRADEcho lite has been designed for firms with limited trade reporting requirements and allows these firms to meet their MiFID II pre and post-trade reporting obligations in a simplified and cost-effective way. The lightweight service covers all MiFID II asset classes and is accessible over the internet where firms can manually report trades directly into the TRADEcho portal.
Reference Data Services
TRADEcho services are supported by the reference data needed to utilise our transparency services. We source data from market data vendors, as well as from our primary partner, UnaVista. This includes but is not limited to: MiFID II Universe of instruments, SIX Swiss reportable securities, LEI codes, CFI and ESMA taxonomy levels, NCA instrument suspensions and list of Systematic Internalisers. All instrument reference data is available to view in the portal.
The TRADEcho Portal sits across all services and has been developed based on 10 years of client feedback. It acts as a primary tool for Traders, Compliance and Regulatory teams to enter trade reports, enter SI quotes, manage exceptions and interrogate the data sent to the service.
TRADEcho's Portfolio Compression transparency service allows firms to search and filter for all Portfolio Compressions made transparent via the TRADEcho Approved Publication Arrangement (APA).