REGULATION

LSE upgrades MTS tech ahead of MiFID II

MTS undergoes revamp for MiFID II transparency and reporting compliance.

By Hayley McDowell hayley.mcdowell@strategic-i.com March 09, 2017 1:06 PM GMT

The London Stock Exchange’s (LSE) fixed income platform MTS has upgraded its technology and data services to support MiFID II compliance.

The changes include support for transparency and waivers compliance, reporting, data and trading venue and microstructure requirements.

Oliver Clark, head of product at MTS, explained MTS has historically placed a major emphasis on transparency and efficiency.

We are working to achieve technical compliance well ahead of the introduction of MiFID II in January 2018 as part of the LSE’s integrated offering covering both on-venue trading and OTC trade and transaction reporting,” he said.

The LSE’s potential merger with Deutsche Boerse was recently scuppered by the European Commission’s request it sells its 60% stake in MTS. 

The Commission raised issues over bond and repo trading feeds provided through MTS and urged the LSE to sell its majority stake in the business to settle concerns.

“LSE regards the required MTS remedy as disproportionate,” the exchange operator said and highlighted its importance in the role of trading Italian government bonds.

The Group also said any change of control of MTS would require complex regulatory approval and therefore “it is highly unlikely that a sale of MTS could be satisfactorily achieved, even if LSE were to give the commitment.”