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What do APAs mean for your MiFID II reporting?

People shelter under umbrellas as torrential rain falls in central London. Photographer: Russell Boyce

MiFID II’s drive for greater transparency increases challenges around what needs to be published, when and by whom. What do firms need to know about an Approved Publication Arrangement (APA) for their data reporting?

MiFID II, which comes into force in January 2018, is set to bring a whole new set of market data publication requirements to both trading venues and investment firms.

Find out more about MiFID II

As a key pillar in the move towards greater transparency, the directive requires that firms publish all pre- and post-trade data and reports in near real-time.

Those details need to be published via a trading venue or Approved Publication Arrangement.

A decade ago, MiFID I established these requirements for equities listed on EU regulated markets. MiFID II broadens them to include OTC instruments, such as bonds, structured finance products, derivatives and emission allowances.

Watch video — Audience Insights Video from London Risk Summit 2017

Consider your APA needs

Many firms have already decided to use solutions like the Tradeweb APA to meet their MiFID II publishing requirements. There are various advantages, as it eliminates the need to invest time and resources into building your own APA.

Tradeweb APA ensures you’re always in compliance with thresholds, waivers, deferral management and Systematic Internaliser (SI) determinations.

It also makes publication easy and accurate by integrating all these rules into one platform, so that only appropriate quotes and trades will be published at the right time.

Tradeweb can also help you manage your deferrals strategically by controlling factors such as trade volume that allow you to hold back publication.

Deferrals can be given under certain conditions and allow publication to be delayed for two days or longer.

Infographic created from live polling results at Thomson Reuters Risk Summit 2017, London
Infographic created from live polling results at Thomson Reuters Risk Summit 2017, London

Find out more about MiFID II

Complexity and potential risk

In order to have accurate and timely data to publish, firms need access to both up-to-date, real-time market data and comprehensive instrument reference data.

And because MiFID II covers far more assets than MiFID I, it raises the stakes in terms of complexity and potential risk. You have to know exactly what needs to be published, when and by whom.

Thomson Reuters is already bringing together these new data sources, including new SI quotes, OTC quotes and trade reports from APAs, new trading venues and new transparency data from existing markets.

Again, you can benefit from our existing and market-leading infrastructure.

It includes the Thomson Reuters Enterprise Platform (TREP), which captures the necessary quote and trade data, and then publishes that data to the designated APA.

Find out more about MiFID II

MiFID II compliance platforms

MiFID II requires SIs to demonstrate clear transparency for their own account trading.

This enables investors to know that they benefit from execution that equals or betters that available from public venues.

Thomson Reuters provides the key data infrastructure and analytics to support transparency through our line of leading solutions.

Including the already-mentioned Tradeweb APA and TREP, here is a list of our platforms that can help in achieving MiFID II compliance:

Thomson Reuters Elektron
Thomson Reuters DataScope
Thomson Reuters Eikon
Thomson Reuters Intelligent Tagging

Thomson Reuters has a full line of proven solutions already at work in the market that are well positioned to help you access the right data, and publish it in the right way and time.

We are here to answer your MiFID II questions and prepare you for the changes ahead.

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