- Fixed income platforms enhanced to comply with updated European rules
- Dedicated MiFID II portal launched on www.mtsmarkets.com
- Customers can benefit from LSEG and Boat Services TRADEcho OTC trade reporting service
MTS, one of Europe’s premier fixed income electronic trading venues, is helping buy- and sell-side customers across its electronic marketplaces prepare for compliance with MiFID II and MiFIR regulatory standards ahead of the introduction of the new legislation in January 2018 with the launch of a dedicated web portal and trade reporting service.
With over 500 unique counterparties trading an average volume of €100 billion each day on its platforms, MTS sits at the heart of the European fixed income markets and prides itself on supporting customers to be at the forefront of compliance with emerging regulation.
The new MiFID II portal on the MTS website outlines how MTS has enhanced its technology and data offering to support the following aspects of MiFID II compliance:
- Transparency requirements and waivers, including updates to current MTS market models to enhance pre- and post-trade transparency
- Reporting and data, including order record keeping, transaction reporting, reference and market data provision, Best Execution reporting and OTC trade reporting
- Trading venue and microstructure requirements, including clock synchronisation for message timestamps, algo testing, pre-trade price and quantity controls, order to transaction ratios and derivatives trading obligations
MTS participants can also leverage London Stock Exchange Group’s full suite of MiFID II compliance services, including:
- TRADEcho service facilitates efficient and straightforward pre- and post-trade reporting in an increasingly complex regulatory landscape. As an Approved Publication Arrangement (APA) TRADEcho offers customers a single, multi-asset class, pan-European, real-time OTC trade reporting solutions. TRADEcho offers Pre-trade SI Determination and SI Quoting, APA services and a Smart Report Router which provides firms with the tools to determine if a trade is eligible for publication and whether it is their responsibility to make the trade public.
- UnaVista, an Approved Reporting Mechanism (ARM) operated by London Stock Exchange Group under MiFID, intends to enhance its transaction reporting service for MiFID II, enabling firms to meet their transaction reporting requirements to National Competent Authorities.
Oliver Clark, Head of Product at MTS, comments: “MTS has been a leading operator of regulated electronic markets for over 25 years, placing a major emphasis on transparency and efficiency, which are two of the key themes that MiFID II is seeking to enhance. We are working to achieve technical compliance well ahead of the introduction of MiFID II in January 2018 as part of the London Stock Exchange Group’s integrated offering covering both on-venue trading and OTC trade and transaction reporting."
MTS Group facilitates a number of regulated electronic fixed income markets across Europe and the US that are managed centrally to ensure optimum levels of global harmonisation and consistency. Over 500 unique counterparties trade an average volume of €100 billion each day on these platforms.
The individual companies within the MTS Group are regulated by financial services regulators in a number of European jurisdictions, including Financial Conduct Authority (FCA), Italian Ministry of Finance, Banca d’Italia and Consob, Autorité des Marchés Financiers (AMF). In the United States MTS Markets International Inc. is a member of FINRA and operates MTS BondsPro which is an ATS registered with the SEC.
MTS Cash is a comprehensive and professional cash securities trading environment for the interdealer marketplace. MTS cash includes several domestic markets regulated in different jurisdictions enabling primary dealers to access unparalleled liquidity, transparency and coverage. MTS Repo provides an order-driven market for the electronic transaction of repo agreements and buy/sellbacks in Italy.
MTS BondVision is a trusted and efficient multi-dealer-to-client electronic bond trading platform, delivering exceptional access for institutional investors direct to market makers. MTS BondVision is accessible in Europe from the Italian and the UK legal entities and in the US through the US legal entity of MTS Group (MTS Markets International Inc.). On the BondVision platform, MTS Group provides institutional investors with real-time pricing and the ability to trade with the major dealers.
MTS Credit provides a variety of electronic execution methods for a wide range of multi-currency non-government bonds, including covered, SSA, corporate and financial bonds. MTS Credit is composed of financial instruments available to trade on both BondVision and MTS Prime.
MTS Swaps leverages existing MTS Group distribution technology to deliver immediate access to a diverse range of liquidity providers through your chosen prime banks.
MTS Data is sourced directly and exclusively from the MTS interdealer market and includes benchmark real-time data, reference data, reference prices and historical data, providing the benchmark data source on the fixed income market.
FTSE MTS Indices are operated by FTSE TMX Global Debt Capital Markets, in which MTS has a minority stake. They provide independent, transparent, real-time and tradable Eurozone fixed income indices, based on tradable prices from MTS. FTSE MTS indices are tracked by (and can be traded via) around 40 ETFs in addition to numerous structured products.
London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.
The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $10 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of data services, research and analytics through Mergent, SEDOL, UnaVista, XTF and RNS.
Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg.
LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 3,500 people.