Bats Europe Rolls Out Latest Software Update Ahead of MiFID II Implementation

With less than six months to go until the implementation of MiFID II, many venues have rolled out a number of new updates, solutions, and changes to become compliant with the new regulatory regime. In light of this shift, Bats Europe has deployed a new software release designed to calibrate its operations with the new regulations.

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The aggregated software release will in total encompass four instalments with the final iteration targeting an October 27 launch date. Its latest and third release already took effect earlier this month, part of an ongoing effort by Bats Europe to near total operational readiness for MiFID II in January 2018.

MiFID II will dramatically reshape the financial services industry – while helping promote more transparent Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and reporting techniques, the sheer latitude of the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term has presented a Herculean task for exchanges and venues. Knowing these logistical challenges, Bats Europe has been preparing for January for over a year, with full compliance being one of its highest priorities thus far in 2017.

Update emphasis

In particular, the latest update from Bats Europe focused on transparency requirements under MiFID II. This includes support for Market Model Typology (MMTv3), which deals with Bats market data feeds and trade reporting requirements. Additionally, the update entails updated FIX tags to meet order record keeping requirements and algo identification requirements, along with enhanced order detail functionality.

This update constitutes the third such installment for Bats Europe – prior software releases took place in 2016, which emphasized upgrades to market data feeds, implementing MiFID II transparency requirements. Moving forward, Bats Europe’s final and fourth MiFID II update will be taking place in Q4 2017 – the release will be integrating an additional tranche of trade-flagging capabilities in conjunction with the ability for third-country firms to supply transaction reporting information to Bats.

David Howson, Chief Operating Officer of Bats Europe, commented in an exclusive statement to Finance Magnates: “Our latest software release is the most important of the four releases we are doing ahead of MiFID II because it includes the functionality for MiFID II compliance.”

“We know the latter part of the year is going to be extremely busy for our customers with the regulation coming into effect in January. For that reason we have worked to get a lot of the key work done well in advance of the end of the year so participants have plenty of time to test their systems,” he added.