MarketAxess Receives Approval from Dutch Financial Regulator
MarketAxess will provide trading platform and regulatory reporting services in the European Union from Amsterdam
New York-based MarketAxess Holdings Inc., the operator of a leading global electronic trading platform for fixed-income securities and provider of market data and post-trade services, announced that its group entities have received approval from the local regulator, the Dutch Authority for the Financial Markets (AFM), to operate a Multilateral Trading Facility (MTF) and act as a Data Reporting Service Provider (DRSP) in the Netherlands.
The services to EU clients will be provided by new subsidiaries located in Amsterdam: MarketAxess NL B.V. for the MTF; and Trax NL B.V. for the post-trade data reporting, acting as a provider of both Approved Publication Arrangement (APA) and Approved Reporting Mechanism (ARM) services. Importantly, the MTF approval includes permissions for MarketAxess to provide its unique Open Trading™ all-to-all execution service to clients in the EU, giving those clients ready access to an existing broad pool of cross-border liquidity.
Dutch regulatory approval ensures MarxetAxess can provide uninterrupted services post-Brexit
The AFM’s approval, alongside MarketAxess’s existing FCA regulatory permissions to provide MTF and DRSP services to UK customers, ensures that MarketAxess is able to provide UK and EU clients with uninterrupted service and access to liquidity post-Brexit. MarketAxess expects the same range of dealers and liquidity will be available on the EU MTF when compared to the UK MTF. This level of continuous service will ensure that MarketAxess clients can confidently comply with their regulatory obligations, even if divergent transparency and transaction reporting regimes are introduced following Brexit.
MarketAxess was one of the first movers after the Brexit referendum to establish an office in the Netherlands
“We’re always looking ahead to anticipate future client needs. That means not just developing award-winning trade execution and reporting technologies, but also knowing how to deliver those technologies to clients in any regulatory environment,” says Christophe Roupie, Head of Europe and Asia for MarketAxess and Trax. “Recognising the potential impact of Brexit on European financial markets, we were one of the first movers in establishing an office in the Netherlands. Receiving approval from the AFM further demonstrates our commitment to ensuring that our clients receive the same level of service and access to liquidity post-Brexit.”
MarketAxess is in good company in the Netherlands
In a reaction to the AFM providing approval for the licenses of MarketAxess, Jeroen Nijland, Commissioner at the Netherlands Foreigin Investment Agency remarks: “I am delighted that MarketAxess has chosen for the Netherlands for European offices and houses their Trading Facility here. MarketAxess selecting the Netherlands is further prove that our country is very attractive for global businesses operating at the forefront of information and technological developments. They will be in good company amongst global players like Netflix and Bloomberg, and homegrown successes such as Adyen and Booking.com.”
According to Jeroen Nijland “It’s no surprise that we are attractive for innovative companies that operate on a global level. The Netherlands is renowned for its creativity and is located right in the heart of Europe. We have great access to an English-speaking talent pool and excellent international digital and transport connections. With uncertainty elsewhere, for example due to Brexit, we welcome companies looking for an alternative as a new business location. The Dutch government readily supports companies and sectors that see extra opportunities in the Netherlands.”