On a quest for answers in Paris

Travelling to Paris today for tomorrow’s open hearing on MiFID II, the two issues I’ll be mulling over on the Eurostar will be record keeping for trading venues and transaction reporting. Both could potentially trigger significant changes in front and middle office workflows for many trading firms.

At the core of my concerns lies the requirement for trading venues to store their members’ own clients’ identifications (RTS 34), used by the member for transaction reporting (RTS 32). Full client details are often unknown at the time of order entry and only determined post-trade, in the middle office. So is ESMA proposing that all client information has to be collected and added to the order message prior to its submission to the venue, or that each venue must provide a second interface through which member firms can submit some data on a post-trade basis? Operationally, are we looking at pre-allocation of all buy-side orders?

It will be interesting to establish ESMA’s real intention and to see whether this holds up under a cost-benefit analysis. After all, ESMA already plans to collect that data in transaction reports.

Leave A Comment

Copyright © 2017 Fidessa group plc. All rights reserved.

The information contained within this website is provided for informational purposes only. Fidessa will use reasonable care to ensure that information is accurate at the time it is made available, and for the duration that it remains on the site. The information may be changed by Fidessa at any time without notice. We also reserve the right to close the website at any time. No representation or warranty, expressed or implied, is given on behalf of Fidessa or any of its respective directors, employees, agents, or advisers as to the accuracy or completeness of the information or opinions contained herein or its suitability for any purpose and, save in the case of fraud, all liability for direct, indirect, special, consequential or other loss or damages of whatever kind that may arise from use of the website is hereby excluded to the fullest extent permitted by law. Any decisions you make based on the information in this website are your sole responsibility and information on the website should not be relied upon in connection with any investment decision.

The copyright of this website belongs to Fidessa. All other intellectual property rights are reserved.

Reproduction or redistribution of this information is prohibited except with written permission from Fidessa.