Qomply, an established transaction reporting company, and Euronext, the pan-European market infrastructure provider, have confirmed a connectivity partnership that aims to provide an enhanced transaction reporting service for industry participants.
By connecting services, Qomply and Euronext will offer customers with a simple and straightforward solution without the high cost and complexities of adding separate solutions.
Qomply clients may take advantage of an improved process that takes trade data, carries out a matrix of 1,000+ rules for accuracy and validity and then transmits the transaction data to Euronext ARM for delivery to the regulator.
Users are able to identify any issues with their trade reporting prior to sending it to the Euronext ARM. This service is reportedly unique in that clients are able to control if and when trades get sent out to the ARM.
Georges Lauchard, COO at Euronext, stated:
“Regulatory reporting is an important part of MiFID II, providing security and transparency to European markets. Euronext’s APA and ARM, designed together with clients, provides firms with a flexible solution to meet their obligations. We are delighted to establish a partnership with Qomply to offer market participants an efficient and reliable MiFIR reporting partnership.”
“Together, we will create value for investment firms that are looking for simple, reliable, and cost-effective data driven solutions – and delivered with the confidence that comes from the leading pan-European market infrastructure.”
Michelle Zak, Co-Founder of Qomply, remarked:
“Euronext is a world leader in global financial markets infrastructure and we are pleased to join them as a connectivity partner as we build an efficient system for meeting regulatory requirements.”
In 2017, the introduction of APAs and ARMs was at its inception with various industry participants trying to acquire services in time for the MiFID January 2018 deadline. This reportedly left many companies with acquiring expensive service agreements as a potential solution to achieving continuity. Three years later, the services of APAs and ARMs have matured significantly and affordable pricing models have been introduced.
“Firms switching service providers could realize a potential savings of upwards of 50pct from 2018 prices. Once ARM contracts are up for renewal, there may be little benefit in maintaining loyalty to a specific provider as Qomply simplifies the process of changing providers.”
For the financial services sector, the bill to introduce MiFID collectively came to €2.5 billion+, and there are various other compliance costs of around €700 million, according to consultancy firm Opimas.
If there’s a reliable way to lower associated charges, particularly for third-party arrangements, then companies should look into these options.