London Stock Exchange Group (LSEG) has added Swiss stocks to its trade reporting service to provide a pan-European service that puts it head-to-head with BATS Chi-X Europe’s offering.
The exchange operator said the addition of Swiss stocks was the final missing piece of its service for reporting OTC equity trades, which is available to both LSE members and non-members.
It believes its low cost offering that can be seamlessly integrated for existing exchange members will prove attractive in a market that has seen significant disruption since Markit announced plans to close its BOAT reporting service later this year.
Trades will cost as little as three pence to report and fees are capped at £800 per month. Existing stock exchange members will also not face any connection costs.
“This is a very efficient model as those already connected to the London Stock Exchange will be able to use it for a very low cost to meet their regulatory obligations to report post-trade data,” James Baugh, head of pan-European sales and marketing at LSE told theTRADEnews.com.
The move to a full pan-European reporting service puts LSE in direct competition with BATS Chi-X Europe, which launched its BXTR reporting service in October last year, launching with a number of broker clients that had been dissatisfied with the Markit BOAT service that had previously dominated OTC trade reporting in Europe. Shortly after BXTR launched, Markit announced it will close BOAT in September 2014 due to insufficient demand for off-market data.
“We’ll be looking to take on orphaned BOAT clients but that’s not the only growth strategy for the service,” explained Baugh. “By adding in the Swiss stocks and our work on implementing the market model topology (MMT) later this year we want to build a high quality data feed that is cost effective for clients.”
BATS has become the dominant player in OTC equity trade reporting and recently announced BXTR holds 48% of the European post-trade reporting market.
LSEG said its existing technology infrastructure, with terminals present in over 100 countries, enables it to offer the service profitably while also keeping costs down.
It charges £15 per month for real-time access to the post-trade data but also makes it available in other data packages for clients.
Ross Stuart, business development manager, real time data, at LSEG, said: “We already include post-trade data at no extra cost in our level one and two data feeds. However, in 2010 we disaggregated this so that clients who only wanted post-trade data could get it and, in line with industry standards, all this data is made available for free after 15 minutes.”
Before the end of 2014, LSEG is hoping to launch a group ticker plant, which it said would fill out its market data and reporting offering by bringing in a range of data along with the MMT reporting standard.