Charles River Development and Trax, a subsidiary of MarketAxess Holdings, have agreed to integrate Trax’s MiFID II Trade and Transaction reporting solutions into the Charles River Investment Management Solution (Charles River IMS).
Mutual clients of both firms will now be able to use the Trax Approved Publication Arrangement (APA) to publish trade reports and Approved Reporting Mechanism (ARM) to transaction report trades to National Competent Authorities (NCAs) for all required asset classes.
MiFID II requires investment firms to publish trade reports of qualifying trades in near real-time via an APA for the purpose of market transparency. MiFID II also requires that detailed transaction reports be submitted prior to end of day on T+1 to the relevant NCAs via an ARM for the purpose of market abuse monitoring. By connecting directly to the Trax APA and ARM, Charles River clients benefit from a streamlined operational solution and simplified connectivity to help meet their regulatory obligations.
Clients of the combined services can leverage Trax Insight, a customisable, web-based operational tool to actively manage and monitor the status of reporting activity through a single interface. Trax Insight allows clients to quickly identify exceptions and data quality issues as well as view industry leading analytics and peer benchmarking reports. Trax also enables clients to securely manage natural person data for the purpose of transaction reporting by leveraging Trax’s European Data Store and token-based identifiers within the Charles River IMS.
Connectivity for trade and transaction reporting is part of a complete, flexible solution that Charles River provides to investment managers to fulfil their requirements under MiFID II. In addition to the reporting enabled by the Trax integration, Charles River’s solution provides commission management and best execution workflows, as well as the underlying data capture across asset classes.
“Charles River’s partnerships with leading APAs and ARMs make it easier for our mutual clients to meet their MiFID II regulatory requirements,” says Peter Lambertus (pictured), CEO, Charles River. “The Trax integration provides clients with an additional option for trade and transaction reporting as part of our comprehensive solution.”
Chris Smith, (pictured), Head of Trax, says: “With regulatory change impacting all areas of the trade lifecycle, the combined expertise of Trax and Charles River forms a compelling solution for firms to meet their transparency and transaction reporting obligations under MiFID II. The integration of the two services will enable clients to streamline operations and reduce the technical burden of regulatory reporting by having a single reporting connection.”
