Reporting Mechanisms Respond to Regulation by Forming Association

With data reporting becoming a hotter topic in European markets thanks to regulators pushing the agenda for more transparency, including, potentially, a fixed income Tape, six industry Approved Publication Arrangements (APAs) and Approved Reporting Mechanisms (ARMs) have launch an association to represent the industry and maintain dialogue with the authorities.

The new association, the APAs and ARMs Association (Aparma) has been founded by affiliates of Bloomberg, Cboe Europe, Euronext, London Stock Exchange, MarketAxess and Tradeweb Markets to represent the interests of companies who operate these facilities in the EU and UK. Established under MiFID II, APAs make public post-trade transparency reports in financial instruments that have been traded off-venue, while ARMs report details of transactions to regulators on behalf of investment firms.

Aparma has been set up to represent the views of its members in relation to regulations and laws impacting APA and ARM businesses and the associated supervisory framework and to promote dialogue with policymakers and regulators, the association says in a release announcing the new venture. With the rules governing trade and transaction reporting under frequent review and scrutiny, the association will also focus on developing and supporting the adoption of best practice with the common aim of improving industry data quality, transparency and the auditability of transactions in both the EU and UK.

As laws for the two financial markets continue to develop post-Brexit, it adds, it is increasingly important to bridge the dialogue between regulators and policymakers to facilitate common solutions for global market participants accessing both markets.

“As EU and UK policymakers move to enhance data quality and transparency across financial markets, it’s important that the voices of APA and ARM operators – whose activities are critical to the achievement of policy goals – are heard,” say Chris Smith, head of post trade services at MarketAxess, who has been named the first chair of the assocition. “Aparma will ensure just that. We’re excited about having a new forum within which we can build a better industry dialogue, share best practice and collectively improve the quality of our data and data services.”

David Bullen, appointed secretary general of Aparma, adds, “I look forward to representing the views and interests of existing and new APARMA members, each of which operate and run an important part of financial market infrastructure and who, to-date, have been underrepresented in important industry and regulatory circles.”

Membership of the association is open to all market participants that meet the established membership eligibility criteria. The activities of the association are governed by an executive committee, who are elected by the general membership and are responsible for the executive management of the association.