Post-Trade Rules Dictate Change
NYSE Euronext is expanding its SFTI footprint to Equinix’s London data center.
The new Markets in Financial Instruments Directive (MiFID II) will have far-reaching implications for providers and users of market data.
One of the cornerstones of MiFID is to improve the quality, format, cost and ability to consolidate market data.
The regulation portion of MiFID II, or Markets in Financial Instruments Regulation (MiFIR) will require investment firms to make public trade reports through a new Approved Publication Arrangement (APA). The provisions establish procedures for competent authorities to authorize APAs and to establish organizational requirements.
MiFIR will also require trading venues, whether they be regulated markets, organized trading facilities (OTFs) or MTFs to make post-trade data available free of charge 15 minutes after the execution of the transaction. It will also establish profusions for consolidated tape providers.
Against this backdrop, NYSE Euronext is expanding the footprint of its Secure Financial Transaction Infrastructure (SFTI) in Europe.
NYSE Technologies, the commercial technology unit of NYSE Euronext has extended SFTI to the Equinix London LD4 International Business Exchange (IBX) data center campus.
Utilizing a newly built SFTI access centre at Equinix’s LD4 site, customers of both companies will benefit from direct connectivity to financial markets and market participants, including NYSE Euronext’s European markets as well as a range of market data and post-trade services delivered over the SFTI backbone.
NYSE Euronext is the second largest trade reporting venue in Europe and will become an APA under MiFID2.
The access point removes the necessity for firms located within Equinix to order their own last mile connectivity into the backbone and provides a low latency route across London, linking the trading hubs on the west and east of the city.
“This new access point will make it much easier for traders in the Equinix facility to access SFTI and all of its diverse services and global connectivity,” Don Brook, head of infrastructure at NYSE Technologies, told Markets Media. “It also furthers our overarching goal of consistently helping customers improve performance and trade more efficiently by utilizing our global footprint and broad product portfolio.”
CEDX opened on 6 September, offering contracts on Cboe Europe single country and pan-European indices.
The MOU covers certain security-based swap dealers and participants.
Equity underwriting on European exchanges rose 70% in the first half.
The analysis is based on transactions publicly reported by 30 European APAs and venues.
A similar service is available on the BIDS platform in the US equity market.