Could you please outline your Brexit strategy?
In order to continue to facilitate its members trading activities post Brexit, EquiLend Group have established a legal entity in Dublin, EquiLend Limited. EquiLend Limited is currently seeking authorisation from the Central Bank of Ireland (“CBI”) to operate an MTF (the “Irish MTF”) and expects to receive authorisation from the CBI during Q1 2019. The MTF, based in the United Kingdom and operated by EquiLend Europe Limited (the “UK MTF”), will continue to operate but with limited access to liquidity from the EEA.
Does EquiLend Europe Ltd operate as a Multilateral Trading Facility (“MTF”)?
Yes. EquiLend Europe Limited is authorised and regulated by the UK’s Financial Conduct Authority (FRN: 225141).
Our proposed new regulated entity EquiLend Limited (pending approval), will also be a regulated MTF under MiFID.
What additional documentation is required where entities are currently members of the UK MTF?
To continue trading with EEA counterparts, all EquiLend members will be required to become direct participants on the Irish MTF by signing the relevant legal paperwork. This has been sent to proposed members in recent weeks. Once signed, the Irish MTF will look to on-board each proposed member directly, adhering to relevant regulatory obligations.
Do you anticipate any IT connectivity changes for the EU platform?
All our public facing network infrastructure will remain as-is and have the same connection end-points. This means that server names, domains, URL’s, and IP addresses are unaffected. In short, we are not making any changes to the way members connect to us.
Are Non-EU counterparties permitted to join the Irish MTF?
Yes – Where local regulation and applicable law permits.
Does the Irish MTF have a MIC Code and LEI?
Yes – as follows:
- UK MTF – EQLD
- Irish MTF – EQIE
Both MTFs also have an active legal entity identifier (“LEI”) which can be viewed at www.gleif.org.
Will I receive a new Rulebook relating to the Irish MTF?
Yes - A new Rulebook will be available to members when the MTF receives its approval from the Irish Regulator.
What happens if I am trading a European asset with a non EEA counterparty who hasn’t signed to the Irish MTF?
Trading activity follows the jurisdiction of the member, not the asset traded.
All counterparties will need to be members of the Irish MTF to ensure their bi-lateral relationships remain active.
My company has established a new entity as part of its Brexit strategy will a test environment be available for this new entity?
Yes - We can set you up with a new Legal Entity in our testing environment for simulated trading activity.
These are the dates we have available for testing
- January 26th, 2019
- February 16th, 2019
What happens if we don’t become a member of the Irish MTF?
We would strongly urge all current members of an Equilend MTF to sign up to the Irish MTF to ensure they will maintain the same levels of liquidity access as they have now. In the absence of completed legal documentation, come March 29th bi-lateral relationships will be restricted to ensure trades do not cross execution venues.
We are here to help our clients navigate this process. Should you have any questions or queries please feel free to contact us at Brexit@equilend.com.