Trax, a leading provider of capital market data, trade matching and regulatory reporting services, is now approved by the FCA to commence testing its Approved Reporting Mechanism (ARM) transaction reporting capabilities with the UK regulator’s new Market Data Processor system (MDP) under the MiFID II regime. This is the first step in Trax achieving full regulatory approval from the FCA for its MiFID II compliant ARM. Through Trax’s connection to the FCA MDP, which we expect to be available from Summer 2017, Trax ARM clients will be able to validate their MiFID II reports with the regulator ahead of the January 2018 implementation date. This compliments Trax’s live end-to-end testing environment for transaction reporting. 


Chris Smith, Head of Trax said, “We have a proud legacy of being at the forefront of operational risk management and we have an unparalleled track record of providing assured and reliable regulatory reporting services to our clients. We have been actively working with clients since 2016 to help them test their MiFID II reporting capabilities in the lead up to the January 2018 implementation date.  Having our ARM approved for MDP testing by the FCA is an essential milestone in the validation and testing process. We will continue to work with our clients in the lead up to ensure they are ready for the start of the new reporting regime.”


To help firms prepare for the MiFID II, Trax has been further developing its capabilities and incorporating a number of value-add services:

  • In 2015 MarketAxess launched Axess All, Europe’s first intra-day trade tape of the fixed income market, bringing a considered level of transparency to the market well-ahead of MiFID II.
  • In April 2016 Trax launched the Approved Publication Arrangement (APA) Demonstrator, a validation engine that allows institutional firms to test preparedness for the MiFID transparency requirements.
  • In September 2016 Trax launched its MiFID Instrument Reference Data Service which enables firms to identify reportable instruments under MiFID I and MiFID II.
  • In November 2016, Trax launched Insight+, a complete multi-asset class MiFID regulatory rules engine. Insight+ streamlines operational processes by managing buy- and sell-side firms’ complete raw transaction flow with accurate instrument eligibility and reference data enrichment. The tool also helps firms to whether they classify as a Systematic Internaliser under the new regime.  


About the FCA’s MDP

The FCA’s new Market Data Processor (MDP) system will help manage the large changes in the volumes and range of data that entities with an obligation to report any of the market data types need to submit to the regulatory under MiFiD II. The current Zen system will be replaced by the MDP system. More info here.