LSE launches MiFID II smart report router with RegTech firm

TRADEcho's new tool determines when trades should be reported to APAs.

The London Stock Exchange (LSE) has launched its open access smart report router ahead of MiFID II, in partnership with regulatory compliance company Boat Services.

The smart report router - launched by the TRADEcho venture - determines if and when the buy or sell-side counterparty should publish a trade and where there is a requirement it routes the trade to an approved publication arrangement (APA).

The router is APA agnostic, so allows users to smart route trade reports to various APAs while reducing the costs of connecting directly to multiple.

The LSE and Boat Services will jointly manage TRADEcho and testing is available to clients in the customer development service department at the exchange.

Both companies said by combining their existing trade reporting services, the breadth and quality of service needed to help firms comply with pre-and post-trade transparency obligations will increase.

Additional functions to the tool will be rolled throughout 2017, including post-trade transparency requirements.

Brian Schwieger, global head of equities product at the LSE, explained the tool offers users choice and flexibility.

Alastair Goodwin, head of business development at Boat Services, added the tool will help users address major challenges ahead of MiFID II.

“This is a major challenge market participants face in the trade transparency space, we have been asked for and are delivering a resilient, compliant and flexible solution,” he added.