BME to launch new transparency services under MiFID II

It will apply to operate as an “Approved Publication Arrangement” (APA)

BME is to launch new transparency services to help market participants to comply with MiFID II’s regulatory requirements, which will enter into force in 2017.

To this end, BME Market Data will apply for authorisation from the supervisory authorities to operate as an Approved Publication Arrangement (APA), a new denomination envisaged by MiFID II in the context of the new European post-trade transparency framework.
The APA manages the system whereby investment firms are obliged to publish in real time the details of their OTC transactions in Equities, Fixed Income, Certificates, ETFs, structured finance products and derivatives to comply with their post-trade transparency obligations under the new regulation.

The APA authorisation grants a license to operate throughout the EU and entails the obligation to disseminate the information received from entities as close to real time as it is technically possible, on a non-discriminatory basis and on a reasonable commercial basis. Besides, the APA is to rely on systems that allow it to thoroughly to monitor the information it publishes and inform clients of potential errors in the information provided.

BME Market Data will apply for APA status as soon as the competent authority starts accepting registrations. Details on the trades reported will be disseminated through BME’s Data Feeds.

MiFID II will have a significant impact on European financial markets in the years to come. While many of MiFID I’s transparency obligations only applied to specific regulated financial instruments, MiFID II extends its reach to cover Equities, Fixed Income, certificates, ETFs, structured finance products and derivatives. The objective is to enhance transparency in the trading of complex financial instruments and in those transactions executed outside a regulated market, MTF and OTF.