MarketAxess gains approval for Dutch operation

The AFM has granted approval for MarketAxess to establish an EU-base in Amsterdam to continue servicing clients post-Brexit.

Fixed income trading specialist MarketAxess has been given the green light by Dutch authorities to operate its trading platform and reporting services in Amsterdam.

The approval, given by the Netherlands Authority for the Financial Markets (AFM), means that MarketAxess will be able to continue providing uninterrupted services and liquidity to its clients in the European Union and the UK post-Brexit.

MarketAxess will operate a multilateral trading facility (MTF) from its EU base in Amsterdam, and will act as a provider of an approved publication arrangement (APA) and approved reporting mechanism (ARM).

“We’re always looking ahead to anticipate future client needs. That means not just developing award-winning trade execution and reporting technologies, but also knowing how to deliver those technologies to clients in any regulatory environment,” said Christophe Roupie, head of Europe and Asia at MarketAxess.

The firm added that the EU MTF will also include access to MarketAxess’ Open Trading platform, and that it expects the same number of dealers and liquidity on its EU MTF compared to its UK MTF. The all-to-all platform that allows buy- and sell-side firms to connect anonymously through a central network reached new monthly trading volume records in January.

“Recognising the potential impact of Brexit on European financial markets, we were one of the first movers in establishing an office in the Netherlands. Receiving approval from the AFM further demonstrates our commitment to ensuring that our clients receive the same level of service and access to liquidity post-Brexit,” Roupie concluded.

Last month, Tradeweb also received approval from the AFM to establish an EU base in Amsterdam in preparation for Brexit. Similar to MarketAxess, Tradeweb will operate its trading platforms and act as an APA from the city. Tradeweb added that it chose Amsterdam for EU operations due to Amsterdam’s infrastructure and the AFM’s expertise in financial services.