Qomply, a leading transaction reporting firm, and Euronext, the leading pan-European market infrastructure, have announced a connectivity partnership that delivers a seamless transaction reporting service for market participants.
By linking services, Qomply and Euronext provide clients with a straightforward solution without the high cost and complications of integrating separate solutions. Users of Qomply benefit from a streamlined process that accepts trade data, performs a matrix of over 1,000 rules for accuracy and validity and sends the transaction data directly to Euronext ARM for timely delivery to the regulator. Users can tease out any issues with their trade reporting before sending it to the Euronext ARM. This service is unique in that users control when and if trades are sent to the ARM.
Georges Lauchard, COO of Euronext commented: “Regulatory reporting is an important part of MiFID II, providing security and transparency to European markets. Euronext’s APA and ARM, designed together with clients, provides firms with a flexible solution to meet their obligations. We are delighted to establish a partnership with Qomply to offer market participants an efficient and reliable MiFIR reporting partnership. Together, we will create value for investment firms that are looking for simple, reliable, and cost-effective data driven solutions - and delivered with the confidence that comes from the leading pan-European market infrastructure.”
Michelle Zak, Co-Founder of Qomply adds, “Euronext is a world leader in global financial markets infrastructure and we are pleased to join them as a connectivity partner as we build an efficient system for meeting regulatory requirements.”
In 2017, the rollout of APAs and ARMs was at its inception with many market participants scrambling to secure services in time for the MiFID January 2018 deadline. This left many firms securing costly service agreements as a tactical solution to achieving continuity. Three years on, the services of APAs and ARMs have matured and competitive pricing models have emerged.
“Firms switching service providers could realise a potential savings of upwards of 50pct from 2018 prices. Once ARM contracts are up for renewal, there may be little benefit in maintaining loyalty to a specific provider as Qomply simplifies the process of changing providers.”, according to Zak.
For the financial services industry, the bill to implement MiFID collectively came to more than €2.5bn, and there are further annual compliance costs of €700m, according to Opimas, a leading consultancy. If there is a way to reduce ongoing fees, especially for third party arrangements, firms should seek out these avenues.