Eurex will launch an electronic price discovery platform for fixed income and money market derivatives.
The platform, set to go live on 6 December ahead of MiFID II, will allow bank’s broker desks and inter dealer brokers to contact market makers with request for quotes (RFQ) to find trading counterparties.
The orders are transmitted automatically to Eurex’s T7 Entry Service (TES) for exchange-trade confirmation and post-trade processing.
It also captures data throughout the negotiation process, which will be made available to the member to support best execution requirements under MiFID II.
Randolf Roth, Eurex executive board member, explained: “Market participants increasingly rely on transparent and efficient market places – not only for their listed business, but also for their former OTC activities.”
Traditionally large or complex orders are agreed through a phone or online chat, but Eurex added there is a growing demand for fully automated solutions by market participants.
MiFID II is set to have a significant impact not only on the OTC market, but the voice brokering business due to stricter requirements on data collection.
The rules could mean a greater shift to electronic trade matching and execution through new platforms.
Eurex has already sought to update is trading technology for MiFID II, including the introduction of a new regulatory market making (RMM) programme, as well as an OTC price discovery service.