The Spanish exchange operator Bolsas y Mercados Españoles (BME) has adapted its fixed income platform to enable brokers and intermediaries the transfer of their operations to the regulated market in order to ensure compliance with Mifid II’s regulation.
The new legal framework streamlines the migration of bond markets to regulated markets, since Mifid II aims at increasing transparency, promoting more orderly markets, and improving the participants’ systems for reporting to supervisors.
BME has also announced securities listed on the main European public debt markets – including Germany or Italy- will be added to BME’s fixed income market.
For illiquid bonds, BME will offer the option of operating based on expressions of interest. Once the transaction is closed, the customer receives confirmation and the market takes care of all the disclosure functions under the new regulation.
With these adjustments, BME’s fixed income market will be able to cover its members and clients’ needs, so that they do not have to use over the counter operations (OTC), the Spanish exchange operator said.
BME’s markets director Jorge Yzaguirre, said: “BME is prepared to provide market members and their clients the routing, trading and trade reporting services to ensure the best compliance with MiFID II in the area of fixed income.”