Data vendor Thomson Reuters has released a white paper outlining 14 proposals for improving the compilation of consolidated pre- and post-trade data across Europe’s equities markets, including the role a new version of MiFID could play in more effective data consolidation.
Exchange group Nasdaq OMX has followed in the footsteps of its counterpart NYSE Euronext by allowing dark alternative trading systems (ATSs) in the US to report their trading volumes through its FINRA/Nasdaq Trade Reporting Facility (TRF).
The UK’s Financial Services Authority (FSA) has fined Barclays Capital Securities and Barclays Bank £2.45 million for failing to provide accurate transaction reports to the regulator and for “serious weaknesses in systems and controls in relation to transaction reporting”.
A recent error in the reporting of over-the-counter (OTC) equity trades, which artificially inflated exchange group NYSE Euronext’s market share of the UK’s FTSE 100 index in June, has highlighted the continuing problems the buy-side faces in obtaining accurate post-trade data in post-MiFID Europe. This has prompted some to call for regulatory intervention.
Trading technology provider Fidessa has launched a global analytics platform that enables its sell-side users to conduct real-time pre-trade, intra-day and post-trade calculations from multiple data sources.
While there has been much focus on improving pre-trade transparency in post-MiFID Europe through the introduction of a European best bid and offer (EBBO) data feed, fragmentation of post-trade data is also causing headaches for buy-side traders, prompting calls for a single, centralised source of trade reporting information.
While most buy-side traders would agree on the importance of achieving best execution, there appears to be no consensus on how best to monitor execution performance according to the results of theTRADEnews.com's latest poll.
Buy-side traders’ execution decisions are arguably under greater scrutiny than ever, with clients expecting every penny spent on investment strategy implementation to be justified. This places great importance on the ability of global asset management firms to identify and manage a suitable benchmark for their trade execution performance across multiple countries and indeed portfolio managers.
The fragmentation of post-trade data for over-the-counter (OTC) equity trades in Europe is preventing effective transaction cost analysis and impairing the ability to observe best execution principles, according to market participants.