LONDON (Reuters) - Electronic trading heavyweight NEX Group launched a new regulatory reporting platform for banks on Thursday that assumes Britain will stick to European regulations on reporting financial market transactions long after leaving the EU in 2019.
The platform, run by fintech startup Abide Financial in which NEX has invested, streamlines the processing of millions of transactions daily for major banks and will take another step up next year under Europe’s new MiFID II regulations.
Abide is already a reporting partner to more than 120 banks, asset managers, hedge funds, and other trading firms and eventually expects to be one of only a handful of providers with around 40 percent of daily transactions.
Chief Executive Collin Coleman said the system assumed Britain would stick closely to the MiFID rules after it leaves the EU.
“We believe that there will be something that looks a lot like MiFID in place after Brexit. Our customers need certainty so we are making a decision to move on with that assumption,” he said, arguing that MiFID’s implementation through UK law will provide a high barrier to changing it after Britain leaves the trading bloc.
“(British regulator) the FCA has been so heavily involved in the drafting of all of these regulations and MiFID II fundamentally supports so much of its mandate,” Coleman said.
“MiFID II is an EU directive, and as such needs to be implemented in UK law. This national law will persist post-Brexit unless specifically repealed, and the bar for retracting financial regulatory law ... should be pretty high.”
Reporting by Patrick Graham; Editing by Dominic Evans and Gareth Jones