MarketAxess Holdings Inc. (Nasdaq:MKTX), the operator of a leading global electronic trading platform for fixed-income securities and provider of market data and post-trade services, announced today that its group entities have received approval from the Dutch regulator, the AFM, to operate a Multilateral Trading Facility (MTF) and act as a Data Reporting Service Provider (DRSP) in the Netherlands.
The services to EU clients will be provided by 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. Importantly, the MTF approval includes permissions for MarketAxess to provide its unique Open Trading™all-to-all execution service to clients in the EU, giving those clients ready access to an existing broad pool of cross-border liquidity.
The AFM’s approval, alongside MarketAxess’s existing FCA regulatory permissions to provide MTF and DRSP services to UK customers, ensures that MarketAxess is able to provide UK and EU clients with uninterrupted service and access to liquidity post-Brexit. MarketAxess expects the same range of dealers and liquidity will be available on the EU MTF when compared to the UK MTF. This level of continuous service will ensure that MarketAxess clients can confidently comply with their regulatory obligations, even if divergent transparency and transaction reporting regimes are introduced following Brexit.
“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,” says Christophe Roupie, Head of Europe and Asia for MarketAxess and Trax. “Recognising 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.”