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Just a few days after the implementation of the Markets in Financial Instruments Directive (MiFID), new services offered by NYSE Euronext in its European markets to ensure publication and reporting of transactions executed off the central orderbook are proving a success.
The new service has already been adopted by all Euronext members making off-orderbook transactions — over one hundred financial intermediaries in total. This new service meets requirements for post-trade transparency under MiFID and features two main developments:
- Extension of the geographical reach of NYSE Euronext publication and reporting services , allowing investment firms to access stocks and ETFs listed not only on Euronext markets, but also on any regulated market in Europe. This means they can publish and report off-orderbook transactions made throughout Europe, all from a single access point using the technology infrastructure already installed by Euronext. Additionally, all transactions executed within Euronext’s central orderbook will continue to be published and reported to regulators of Euronext cash markets.
- Users of the trade publication service have the opportunity to benefit from a contribution reward scheme. The most active contributors will benefit from the revenues generated by the sale of this specific information to data vendors. As a result, the service may end up being free or even a source of profits for some users.
Clients subscribing to the trade publication service benefit automatically from the reporting service for transactions executed off the central orderbook. They will thus be able to report all transactions in all stocks and ETFs listed on any regulated market in Europe, to all regulators of Euronext cash markets1. The reporting service is thus recognised by Euronext cash market regulators1 as their “Reporting Channel”. This means official recognition for the guarantees of the security and confidentiality of data and the effective production of information for reporting of transactions.
These publication and reporting services round out the internal matching service that has been available since November 1. This service enables clients to optimise order flows by giving priority status to matching their own buy and sell orders in the central orderbook. As a result, each client gets the upside of order internalisation — reduced execution costs — with no IT development and no obligation to become a Systematic Internaliser2.
1 Excluding Portugal, where the impact of transposition of the Directive on October 31, 2007, remains to be defined by the national regulatory authorities.
2A Systematic Internaliser is an investment firm which, on an organised, frequent and systematic basis, deals on its own account by executing client orders outside a regulated market or an MTF.
About NYSE Euronext
NYSE Euronext, a holding company created by the combination of NYSE Group, Inc. and Euronext N.V., commenced trading on April 4, 2007. NYSE Euronext (NYSE Euronext: NYX) operates the world’s largest and most liquid exchange group and offers the most diverse array of financial products and services. NYSE Euronext, which brings together six cash equities exchanges in five countries and six derivatives exchanges in six countries, is a world leader for listings, trading in cash equities, equity and interest rate derivatives, bonds and the distribution of market data. Representing a combined $30.3 trillion/€21.3 trillion total market capitalization of listed companies and average daily trading value of approximately $139 billion/€103 billion (as of September 30, 2007), NYSE Euronext seeks to provide the highest standards of market quality and integrity, innovative products and services to investors, issuers, and all users of its markets.
