IHS Markit establishes SI database

Database of systematic internalisers aims to help firms navigate reporting responsibilities under MiFID II.

IHS Markit has launched a registry of systematic internalisers (SI) to help firms understand trade reporting obligations under MiFID II.

It was developed in partnership with the International Swaps Derivatives Association (ISDA), broker-dealers, approved publication arrangements (APAs) and other industry groups. 

The database will include all asset classes including bonds, OTC derivatives, equities and equity-like instruments and structured products.  

Buy- and sell-side firms have highlighted the lack of a database as a challenge due to reporting obligations under MiFID II being dependent on knowing a firm’s SI status. 

James Robert, director for European public policy at ISDA, explained it is likely regulators will publish a list of firms that are SIs at an entity level, but to fully understand their trade reporting obligations, firms need more granular information about an SIs classification. 

“By offering a central registry of SI classifications that offers this level of granularity, Counterparty Manager supports market participants by helping to remove uncertainty around their MIFID II trade reporting obligations,” he added. 

The database will be available through IHS Markit’s Counterparty Manager service, a platform with more than 10,000 firms which helps manage regulatory disclosures. 

IHS Markit said it also expects dealers to adopt a range of strategies to comply with the SI regime, some more broadly and across asset classes. Others will likely register on a granular basis just for products in which they have significant volume. 

“Our registry provides on demand access to SI status, giving firms full pre- and post-trade transparency for whether they are subject to reporting rules on any given trade,” said Brie Lam, director of regulatory and compliance services at IHS Markit.

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