London Stock Exchange Group (LSEG) and Boat Services have joined forces to develop a MiFID II trade reporting solution, but plans may not end there with Boat suggesting the platform could be built out to deliver a utility-type service supporting a number of regulations.
Initially, LSEG and Boat have signed heads of terms that will bring together the London Stock Exchange and Boat’s existing MiFID trade reporting services to create a MiFID II compliant platform that will provide a multi-asset, pan-European reporting solution that meets the real-time trade reporting requirements of the regulation. The platform is expected to go live at the end of the second quarter of 2016, allowing regulators to ensure it is working correctly before the MiFID II compliance deadline of January 2017. It will complement LSEG’s T+1 MiFID and EMIR transaction reporting services that are hosted on the exchange’s UnaVista platform.
Boat was set up in 2007 in response to the regulatory pressures introduced when MiFID was implemented and built its platform using Cinnober technologies. The company was acquired by Cinnober in 2014 and will continue to use the company’s technology in its partnership with LSEG.
Jamie Khurshid, CEO of Boat Services, explains: “We have experience in equities, but needed to add fixed income to our platform. We are partnering with LSEG to do this as it has a great brand and market reach. The LSEG also sees Boat as a good partner with which to offer MiFID II compliance as we don’t compete. With our combined strengths and complementary services, the partnership offers a one-stop shop to help ease the regulatory burden.”
From LSEG’s perspective, Nicolas Bertrand, head of equity and derivatives markets, adds: “Signing this agreement with Boat Services represents an important step in creating a single, multi-asset trade reporting service for European capital markets. Responding to demand from customers, this partnership will bring a comprehensive reporting solution to market quickly, ahead of new reporting requirements under MiFID II.”
The trade reporting solution will be offered as a managed service out of Boat’s Equinix LD4 location and will provide the pre-trade and post-trade transparency requirements set down in MiFID II. Khurshid says: “We will be the only provider of a multi-asset platform for MiFID II compliance and will not be limited in what we do as we are not an exchange. Banks have been looking for something like this, all their reporting obligations in one place.”
Considering the potential of the service to become a utility, he concludes: “The service has all the signs of being a utility type service in terms of its ability to minimise cost and maximise the value of data in response to customer interests. It is asset class agnostic and connectivity could be added to support more regulations.”