London - IHS Markit has announced the launch of a cross asset class registry of Systematic Internalisers (SIs) to help firms understand their trade reporting obligations under MiFID II.
The service covers all asset classes covered by ESMA RTS 2, including bonds, all classes of OTC derivatives, equities and equity-like instruments and structured products. It was developed in consultation with the International Swaps and Derivatives Association (ISDA), broker-dealers, Approved Publication Arrangements (APAs) and other industry groups.
SIs are investment firms that fill a significant number of client orders internally. According to MiFID II, when one party to a transaction executed off-venue or on a non-European venue is an SI, that party is responsible for reporting trades on a near real-time basis through an APA. This makes knowing the SI status of counterparties a key determinant in trade reporting workflow. Trade reporting rules and the ability to opt in to the SI regime take effect on January 3, 2018.
The IHS Markit solution is provided by Counterparty Manager, a platform which manages regulatory disclosures and account onboarding documentation. Counterparty Manager will provide a single source of SI data to support trade reporting workflow and also give investment firms a mechanism for disseminating SI status to APAs and their clients.