FIX Trading Community, the non-profit standards body for the global financial trading sector, has developed the FIXProtocol for transmitting MiFID II transaction reports to Approved Reporting Mechanisms (ARMs).
MiFID II will require all investment firms (including certain buy-side institutions) executing transactions in financial instruments to report details of their transactions to the national regulator, before the close of the following working day.
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The trading body said that although the European Securities and Markets Authority (ESMA) has devised data standards to be used in transaction reporting by ARMs, there is no defined mechanism for data transmission to the ARMs.
Therefore, its global technical committee has undertaken to make necessary changes to the FIX Protocol in this regard and offer mappings onto the ISO 20022 data standard required by ESMA.
FIX Trading Community will also roll out version 3.0 of its Market Model Typology (MMT). The MMT, a data standard for trade classification, offers market participants a uniform view of trading activity.
The latest MMT version has been designed to support the existing draft MiFID II level 2 text on post trade transparency for equity as well as non-equity instruments, the trading body said.
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By GlobalDataLSE Equities & Turquoise head of sales & marketing James Baugh said: "As we move towards the implementation of MiFID II, market participants’ minds will become increasingly focused on new trade reporting requirements. Together with Boat, as the developers of a single, multi-asset, pan-European reporting platform, we welcome FIX Trading Community’s commitment to create an industry wide standard."
Trax head of regulatory report strategy Len Delicaet added: "MiFID II transaction reporting extends the reporting obligation in three meaningful ways to include 1) a new group of financial participants including the buy-side, 2) a much broader set of in-scope instruments and 3) a deeper set of required data fields.
"These obligations add operational complexity which Trax has extensive experience in helping firms manage, including the development of a pre-MiFID II ARM rules engine allowing firms to test their preparedness for MiFID II today. The ability for firms to connect to the Trax ARM via the common FIX language will be of great value as the industry prepares for regulatory change."
