The London Stock Exchange (LSE) has formally unveiled a package of services that it will offer member firms to assist their compliance with the EU's Markets in Financial Instruments Directive (MiFID) which comes into force in November.
The LSE began a detailed consultation on the MiFID-related services it would offer earlier this year.
The exchange has now confirmed and detailed the new services, which include the introduction of new market-making functions on Sets and Euroset and a new European Quoting Service for firms to advertise prices in non-UK securities.
Earlier this week the exchange launched its Setqx platform for small cap and fledgeling stocks excluded from the order book. The service enables firms to meet the MiFID requirement to display unfulfilled client limit orders by providing a facility to submit limit orders executable through periodic auctions, alongside non-electronically executable market maker quotes.
In addition to its existing services, the LSE will introduce a European trade reporting service for both on and off-exchange trades in all EU securities. The latter will also be available to non-member firms. Both services will provide automated application of trade publication delays in accordance with the new MiFID block trade reporting regime.
Facilities for data and best execution analysis include a new stand-alone service channels on Infolect to provide data on all off book trade reports and the provision of new best execution services through Proquote, which will provide execution reports for retail trades comparing quotes on multiple venues and transaction cost analysis.
Details of the new MiFID services follow the launch earlier this week of the LSE's new TradElect platform, which has been designed to raise capacity and position the market for higher e-trading volumes. The system has been rolled out to fight off competition from new ATSs and bank-backed networks that are looking take advantage of the MiFID regulations.
David Shrimpton, head of product management and development at the LSE, says the new functionality "will give the market comprehensive, familiar, robust and competitively priced MiFID services, structured to let individual firms choose the solutions that best fit their business model".