Following the recent review of the Markets in Financial Instruments Regulation (MiFIR) in both the EU and UK, systematic internalisers (SIs) will no longer have to take responsibility for post-trade transparency reporting. Now, BNP Paribas has adjusted its SI coverage to suit the new rules.
Under previous MiFIR rules, SIs were responsible for the post-trade transparency reporting of transactions executed outside trading venues. They could do this through Approved Publication Arrangements (APAs). Firms qualified as SIs based on their trading volumes in specific instruments or could choose to opt in as one.
The MiFIR review discontinued the SI regime for derivatives, bonds, and other non-equity financial instruments. In a press release, BNP Paribas lists other changes introduced by the review. These include the removal of pre-trade transparency requirements and instrument referential data (ISIN) reporting, as well as the establishment of a Designated Publishing Entity (DPE) regime to replace the SI regime for over-the-counter (OTC) trades.
BNP Paribas Global Markets has been a registered SI since the inception of MiFIR in January 2018. Following the review and the removal of the SI regime for derivatives, bonds, and other non-equity financial instruments, it will now de-register as an SI for these asset classes.
It will remain an SI for equity shares, depository receipts, exchange-traded funds (ETFs), and other equity-like financial instruments.
