(Vienna) MiFID II, the EU Directive for Markets in Financial Instruments will take effect at the beginning of 2018 and have a significant impact on pre-trade and post-trade transparency requirements for European financial markets. The Directive also covers many more financial instruments than has been the case until now. In response, the Vienna Stock Exchange is working on an IT solution for MIFID II reporting obligations regarding OTC transactions and the reporting of orders and quotes for investment firms (including systematic internalisers). The Vienna Stock Exchange will make this service available pending regulatory approval from the FMA for offering an APA (Approved Publication Arrangement). The new service will be called TTR® II and is based on its already established service TTR® (Transparent Trade Reporting, covers MiFID requirements).
At yesterday's panel discussion held by the Austrian Association for Financial Analysis and Asset Management (Österreichische Vereinigung für Finanzanalyse und Asset Management, ÖVFA) on the subject of MiFID II, Ludwig Nießen, Management Board Member of the Vienna Stock Exchange responsible for IT and operations, once again stressed the exchange's leading role in the development of IT services: "Our system architecture is developing in line with the legal requirements. One of our key objectives is to help trading participants meet their regulatory requirements."
The Vienna Stock Exchange develops solutions not only in response to legal requirements, but also drawing on more than 25 years of experience in modern trading infrastructure. In future, apart from the cooperation partners currently linked to the Vienna SE, the Zagreb Stock Exchange will also join the trading system operated by the Vienna Stock Exchange. Additionally, the contracts for the operation of the trading systems on the Budapest Stock Exchange and the Ljubljana Stock Exchange were extended until the end of 2021 - proving that VSE's IT solutions are customer-oriented and delivered to the highest standards. The Vienna Stock Exchange will thus operate the technical infrastructure for five stock exchanges in the future.
The rules and regulations known as "MiFID II" refer to a EU Directive (MiFID) and EU Regulation (MiFIR). They are the building blocks of a set of reforms aimed at stabilizing and modernizing the European financial system – as well as making market structures more resilient and efficient, widening the powers of supervisory bodies, regulating commodity derivative markets more tightly, and further improving investor protection.
About the Vienna Stock Exchange
The Vienna Stock Exchange is the only securities exchange in Austria. It features a modern infrastructure and supplies market data and relevant information. It offers Austrian companies maximum visibility, high liquidity and utmost transparency. Investors can rely on the smooth and efficient execution of exchange trades. The Vienna Stock Exchange operates a central market datafeed for Central and Eastern Europe (CEE) and is well established as an expert for the calculation of indices with a reference to the region. Wiener Börse AG, together with its holding company, CEESEG, cooperates with over ten exchanges in CEE and is globally recognized for this unique know-how.
