In Q4, European derivatives exchange Eurex, will launch an electronic price discovery platform that allows bank's broker desks and inter dealer brokers to contact market makers with request for quotes in order to find a counterpart to a trading interest.
Initially, the service will be available for fixed-income and money market derivatives, but other asset classes will be added soon.
Orders are automatically transmitted to Eurex' T7 Entry Service (TES) for exchange-trade confirmation and post-trade processing. The service captures all data throughout the negotiation and makes it available to the member in order to support with the Best Execution requirements under MiFID II.
The new offering also supports market participants in their efforts to comply with MiFID II. The impending legislation will strengthen the emphasis on transparency and best execution as well as stricter rules on transaction reporting, research and trading. In this context, MiFID II will affect brokers to meet stricter rules on data collection and proof of best execution.