Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

BIG XYT DELIVERS ENHANCED TRANSPARENCY ON SI VOLUMES UNDER MIFID II

BIG XYT DELIVERS ENHANCED TRANSPARENCY ON SI VOLUMES UNDER MIFID II

Published : , on

Liquidity Cockpit dashboard now identifies addressable SI liquidity for MiFID II Best Execution

Big xyt, the independent provider of high-volume, smart data and analytics capabilities, is pleased to announce the addition of enhanced functionality on its Liquidity Cockpit dashboard, providing greater transparency on over-the-counter (OTC) equities activity, including Systematic Internaliser (SI) transactions.

The latest functionality, called ‘Liquidity Type’, has been developed in response to a strong desire among practitioners for the identification of addressable activity within OTC and SI trade reports. It has become apparent that a high proportion of activity labelled as SI is non-addressable, such as technical trades. This is also evidence that SI transactions are being reported twice, as participants continue to become accustomed to the new MiFID II regime.

The new Liquidity Type functionality enables clients using Liquidity Cockpit to distinguish between total addressable and non-addressable activity for OTC and SI transactions. Addressable activity excludes trades with any of the following conditions: non price forming trade; trade not contributing to the price discovery process; technical trade; ex/cum or special dividend; duplicative trade report; trade with conditions; give-up/give-in trade.

A more granular understanding of OTC and SI volumes are crucial to all market participants, particularly when trying to prove to clients and regulators that Best Execution policies are being complied with.

The new Liquidity Cockpit functionality shows that less than 50% of the total SI volume reported is addressable. The Liquidity Cockpit analytics normalise liquidity all different types of venues and offers the user an interactive dashboard to understand liquidity across time, venues, regions, a range of new condition codes and individual securities.

Robin Mess, CEO at big xyt commented, “With the additional quantity of prices and trades being reported as OTC and by SIs, firms need to be able to identify where prices are really addressable and accessible to them; for instance, even though a tick may appear on the reported tape, unless an algorithm is available to spot it and trade it, firms could not be held accountable for missing it when challenged.”

Mess continued, “Being responsive to our clients is very important to the team here at big xyt and I am delighted that we have been able to quickly deliver this solution to an unforeseen complication of MiFID II implementation.”

Tim Cave, an equities analyst for TABB Group in London, added “It has become clear at the outset of MiFID II that lots of different OTC activity is being reported under the SI flag, making it difficult to decipher what is addressable liquidity and what isn’t.” He added “Anything that provides greater clarity in this area helps both practitioners and regulators gain a better understanding of where true liquidity resides in Europe’s equity market and that can only be a good thing for the industry as a whole.”

Liquidity Cockpit provides clients with a normalised view of granular tick data and overview of market share across all major European venues and the ability to act on changing market dynamics. It keeps track of changes in trade conditions or execution venues, and applies custom measures such as LIS classified trades. Crucially the Liquidity Cockpit can predict the impact of dark pool volume caps.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post