Will clients need to trade report?
Which APA is Peel Hunt going to use?
Will Peel Hunt offer delegated or assisted reporting?
What is changing
MiFIDII extends the requirement to provide post-trade transparency through real-time trade reporting to a much wider range of asset classes. Post-trade transparency is required for all equity asset classes (shares, ETFs, certificates, depositary receipts and other similar) and non-equity asset classes (fixed income, structured products, emission allowances and derivatives). In addition, the obligation to trade report may fall on buy-side clients where trading takes places away from a trading venue or an SI.
Peel Hunt Approach
Peel Hunt’s trading with clients in UK and European equities takes place on a trading venue, through our trade reporting to the London Stock Exchange (LSE) and NEX Exchange (NEX). In these “on-venue” trades, the obligation to trade report falls on the trading venue itself and the exchange rules place the obligation to trade report on the market maker member firm. This means the obligation to trade report will in these cases always be on Peel Hunt, and not on our clients.
Peel Hunt will ensure all trading with clients takes place on a trading venue for all asset classes we trade under MiFIDII. We have worked with vendors and exchanges over the last year to make sure this is possible to ensure our clients never have an obligation to trade report.
What does this mean for me?
The on-exchange model Peel Hunt operates is well-established and is continues to be recognised by both the FCA and ESMA. It is simple for clients as the trade reporting responsibility always lies with Peel Hunt – there is no need for a client to use an APA or make use of ‘assisted’ or ‘delegated’ trade reporting when trading with Peel Hunt in this way.
Explore our articles on the main topics surrounding MiFID II, for a deeper insight into our approach to the new legislation.