Aquis Technologies, part of Aquis Exchange, has gone live with a new connectivity hub to allow systematic internalisers (SIs) and counterparties to link up bilaterally in line with MiFID II.
The firm is currently onboarding the first of 10 clients who have agreed to connect to the hub, known as Aquis Market Gateway (AMG), according to Magnus Almqvist, head of technology sales at Aquis Technologies.
AMG aims to simplify the SI connectivity process for counterparties using low latency technology and a normalised application programming interface (API) to connect parties on a bilateral basis.
Almqvist tells The TRADE that despite firms launching similar services the AMG is unique in that it is unequivocally bilateral.
“SIs are not meant to be multilateral under MiFID II and we don’t interfere in the connectivity process at all, that’s what differentiates us from our competitors. We don’t watch the client relationship or how they communicate, so the SIs retain full control of the information sent to the counterparty,” Almqvist says.
The pricing model for the AMG is in line with Aquis Exchange’s pricing, meaning costs are capped and provided on a subscription basis, making it easier for clients to control and predict costs.
Demand for connectivity to SIs is expected to grow significantly under MiFID II requirements which have seen the closure of broker crossing networks. As a result, Aquis said it expects AMG to be a flagship product for its technology business as the industry adjusts to the new regulations.
“There is a big appetite for this service in the market with large volumes traded in SIs from the outset of MiFID II. Players are looking to broaden their interactions with SIs in the future and AMG allows them to do exactly that,” Almqvist added.