Could you please outline your Brexit strategy?
In order to provide certainty for its members around Brexit, EquiLend established a legal entity in Dublin: EquiLend Limited. EquiLend Limited received its authorisation from the Central Bank of Ireland (“CBI”) to operate an MTF (the “Irish MTF”) on March 21, 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 Limited operate as a Multilateral Trading Facility (“MTF”)?
Yes. EquiLend Limited is authorised and regulated as an MTF under MiFID by the Central Bank of Ireland, reference C187728.
EquiLend Europe Limited is authorised and regulated by the UK’s Financial Conduct Authority (FRN: 225141).
Which members will move to the Irish MTF?
On September 9, 2019, when the Irish platform goes live, all trading activities of EU counterparties (i.e., clients based in the EU and their global counterparties) excluding the UK (and that of their counterparts) on-boarded by the Irish firm will move to the Irish MTF.
Members whose trading activities are moved to the Irish MTF will have the same access to liquidity they have now, but their EU (ex-UK) respective trades, irrespective of the counterparty, will be passed over to the Irish MTF. All remaining activity will remain as is.
What additional documentation is required where entities are currently members of an EquiLend MTF?
To continue trading with EU counterparts, all EquiLend members will be required to become direct participants on the Irish MTF by signing the relevant legal paperwork. This has already been sent to proposed members. 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 Irish MTF platform?
All our public-facing network infrastructure will remain as-is and have the same connection end-points. This means that server names, domains, URLs 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:
- Irish MTF – EQIE
- UK MTF – EQLD
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 once the on-boarding process is complete. The current rulebook for the Irish MTF will be available at all times from our website.
What happens if I am trading a European asset with a non-EEA counterparty that 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 bilateral 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 assist you in setting up a new legal entity in our testing environment for simulated trading activity. This will run continuously in the lead up to September 9, 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 September 9, 2019, bilateral 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.