Are the tectonic plates shifting in the Data Reporting Services Providers (DRSP) market?

Are the tectonic plates shifting in the DRSP market?

Not too long after the CME announced it was shutting down its NexAbide ARM service, the Deutsche Boerse announced today that it is selling its “regulatory reporting hub” to MarketAxess’s Trax NL B.V, an existing ARM.  The Hub provides both ARM and APA services which will complement the services provided primarily in the UK through Xtrakter Limited. With a stroke of a pen MarketAxcess has a very large chunk of the EU ARM market. 

Limited ARM options for UK

In the UK, the ARM options available to firms are limited to three providers following the withdrawal of NexAbide:

  1. Bloomberg Data Reporting Services Limited
  2. London Stock Exchange plc (UnaVista)
  3. Xtrakter Limited (MarketAxess)

Whilst in Europe there is a more diversified market for ARM services and therefore more choice, Deutsche Boerse represented the largest EU ARM with very competitive pricing.

So what’s next? 

I presume all existing clients will seamlessly migrate to the Trax NL B.V. ARM.  The transaction is meant to conclude in the fourth quarter of 2020 along with the closedown of NexAbide on 30th November and Brexit at the end of the year. 

I am sure there will be more information on that front from MarketAxess shortly but the focus is likely to be on continuity of service and ensuring firms are ready of the Brexit transition. 

Today at the Trade and Transaction Reporting conference, Ana Fernandez, the manager of the FCA’s Transaction Monitoring Unit, made it clear that firms need to be ready for Brexit and there will be no transition period. 

EU ARMs list courtesy of ESMA:

  1. Euronext Paris SA
  3. AQ Metrics Limited
  4. Hellenic Exchanges – Athens Stock Exchange SA
  5. Bloomberg Data Reporting Services B.V.
  6. Trax NL B.V.
  7. Deloitte Solutions
  8. Krajowy Depozyt Papierów Wartościowych S.A.
  9. Nasdaq Stockholm AB
  10. UnaVista TRADEcho B.V.
  11. Regulatory Services GmbH
  12. vwd TransactionSolutions AG
  13. Nasdaq Broker Services Aktiebolag
  14. Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
  15. Raiffeisenverband Salzburg eGen
  16. Raiffeisen-Landesbank Tirol AG
  18. Raiffeisen-Landesbank Steiermark AG
  19. Raiffeisenlandesbank Vorarlberg Waren- und Revisionsverband registrierte Genossenschaft mit beschränkter Haftung
  20. Raiffeisenlandesbank Kärnten – Rechenzentrum und Revisionsverband, registrierte Genossenschaft mit beschränkter Haftung
  21. KELER Központi Értéktár Zrt.
  22. Raiffeisenlandesbank Burgenland und Revisionsverband eGen.

Kaizen is offering CME clients moving to a new regulatory reporting provider a free healthcheck of their regulatory reporting data quality. Allowing Kaizen to independently test your reporting quality will ensure you meet your regulatory obligations and will also provide early identification of issues, allowing you to correct any errors before you move to a new ARM or Trade Repository.  Contact us to find out more.