Thomson Reuters Adds MiFID II Solution to Address ‘No LEI, No Trade’ Mandate

Thomson Reuters has added a new MiFID II data solution to its Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term product portfolio. The new LEI Profiling Service allows market participants to meet their 'No LEI, No Trade' requirement which mandates all entities trading with European counterparties across all asset classes to obtain a legal entity identifier (LEI).

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Thomson Reuters LEI Profiling Service comes as Europe readies itself for the implementation of MiFID II in January 2018. This new solution generates client-specific reports that help financial institutions meet the regulatory requirements that require all legal entities involved in a trade, including the executing, submitting or transmitting firm, on both the buy- and Sell-Side Sell-Side Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in th Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in th Read this Term, to include LEIs in their trade reporting. In turn, the LEIs will need to report transactions across all asset classes, not just derivatives.

According to the company statement, the service will allow users evaluate the quality of their LEI data and identify compliance gaps which need to be addressed in the lead up to MiFID II implementation date. Reporting with a trusted LEI helps identify parties involved into transactions regardless of the broker-dealer or the entity that may be reporting to the regulator.

No LEI, No Trade is an important part of MiFID II as it covers all asset classes in every jurisdiction. According to this rule, all entities trading with EU counterparties will be required to obtain LEIs, store them in their reporting systems, and have in place the necessary maintenance procedures ensuring that they are renewed on a timely basis.

Thomson Reuters has further explained the true value of its new service, which will be realized when it needs to ensure that it is equipped to handle the predicted surge in LEI registrations. The vendor said: “The new service allows clients to identify those entities which have yet to request LEIs and, equally important, where LEIs exist determine their status. Upon adoption of the new service, clients send their entities of interest to Thomson Reuters, which then matches these against the LEI records stored within the Thomson Reuters Avox Database, which maintains 100 percent LEI coverage, based on daily updates from the Global Legal Entity Identifier Foundation.”