BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets, has selected Bloomberg Entity Exchange to help the clients of its EU regulated entities adhere to MiFID II client repapering and rulebook disclosure rules.
BGC has applied to operate Organized Trading Facilities (OTFs) and Multilateral Trading Facilities (MTFs) under the MiFID II regime. As such, BGC is required to collect information related to venue participants and related transaction activity. MiFID II obliges brokers like BGC to collect and maintain more detailed information about their clients, amend business terms and conditions and disclose rulebook information about the trading venues they operate.
Bloomberg will help BGC by employing its web-based entity data management solution, Entity Exchange, to drive the client engagement and data collection process as well as the distribution and collection of new terms of business contracts as mandated under MiFID II.
"As part of our MIFID II compliance, we are partnering with Bloomberg Entity Exchange to ensure that BGC is managing and streamlining the repapering process for our clients," said Mr. Shaun D. Lynn, President of BGC Partners.
Bloomberg Entity Exchange is a community platform for the secure exchange of client information required to comply with the data requirements mandated by Know-Your-Customer (KYC) obligations as well as compliance requirements stipulated in MiFID II.
"New regulations have obliged brokers to reconsider how they collect client information," said Dan Matthies, head of Bloomberg's Entity Exchange business. "While this creates a short-term burden on compliance and client teams, it also offers the opportunity to put a new process in place to drive better client service and risk management going forward."
Bloomberg Entity Exchange provides a centralised solution on a single platform by managing and sending from a single source, whilst providing a means to distribute a series of documents simultaneously. The platform will enable clients to provide BGC with their data securely and provide an end-to-end audit trail of all relevant activity.
"It is important that we educate clients about our approach to MiFID II, while providing them with the necessary documentation which allows them to trade with BGC Partners, once the regulation is in effect," added Mr. Lynn.
Dan Matthies of Bloomberg added: "Bloomberg has engaged with thousands of firms to understand how the experience of exchanging information with brokers can be improved. BGC's decision to employ Entity Exchange shows it is also focused on improving the customers' experience. This has aligned us to deliver excellent customer service together."