MarketAxess has been approved by the Dutch regulator AFM to operate a Multilateral Trading Facility (MTF) and act as a Data Reporting Service Provider (DRSP) in the Netherlands.
The regulatory approval will allow the leading global electronic trading platform for fixed-income securities and provider of market data and post-trade services to provide its services to EU clients via its new subsidiaries located in Amsterdam: MarketAxess NL B.V. for the MTF; and Trax NL B.V. for the post-trade data reporting, acting as a provider of both Approved Publication Arrangement (APA) and Approved Reporting Mechanism (ARM) services.
The MTF license also allows the New York-based financial services firm to give its EU clients ready access to an existing broad pool of cross-border liquidity. through its Open Trading all-to-all execution service.
The company is already licensed by the UK Financial Conduct Authority as an MTF and DRSP. The Dutch license ensures that MarketAxess is able to provide UK and EU clients with uninterrupted service and access to liquidity post-Brexit. The company expects the same range of dealers and liquidity will be available on the EU MTF when compared to the UK MTF.
Christophe Roupie, Head of Europe and Asia for MarketAxess and Trax, commented: “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. Recognizing 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.”
The regulatory authorization is intended to ensure MarketAxess clients can confidently comply with their regulatory obligations, even if divergent transparency and transaction reporting regimes are introduced following Brexit. Bloomberg has recently obtained the same MTF license from the Dutch authorities in order to better deal with the UK’s departure from the European Union.