• Sun Trading, a leading liquidity provider in the European equities market, is operating as a Systematic Internaliser (SI) under MiFID II
• Cboe provides a full suite of SI services for participants acting as or interacting with SIs under the MiFID II SI regime

Cboe Global Markets, one of the world’s largest exchange holding companies, today announced that Sun Trading, a leading liquidity provider in the European equities market, will utilise Cboe Europe Equities’ suite of MiFID-II compliant Systematic Internaliser (SI) services, which include SI quote distribution, bilateral connectivity and matching services, and trade reporting.

Sun Trading is a leading global electronic market maker, providing liquidity in equity, fixed income and FX markets. It is one of the largest bespoke European equity stream providers under MiFID I, and provides liquidity in European cash equities to sell-side firms in Europe by utilising MiFID II’s SI regime. Sun Trading International is operating as a SI in Europe under MiFID II, providing continuous two-sided quotes in over 1,000 European securities at sizes that are multiples of standard market size (SMS).

Cboe offers a comprehensive suite of SI services for participants acting as or interacting with SIs under the MiFID II SI regime. This multi-faceted offering brings together real-time public quoting, network access, bilateral trade matching and real-time trade reporting. This suite of services brings standardisation and transparency to the SI regime.

Mark Hemsley, President of Europe for Cboe, said: “Sun Trading has long been a leading provider of liquidity to the European equities market and we are delighted to be chosen as a technology provider for their SI activities. Firms like Sun Trading want to provide their clients with choice and efficiency when interacting with their clients as an SI. We are known for our technology, and given our neutral position in the market, we believe our SI technology offering brings standardisation to this area of the market.”

Jamal Tarazi, Head of European Trading for Sun Trading added: “We are excited to be working with Cboe and to utilise the full suite of SI services in order to support our SI activities. Sun Trading, operating as an SI, aims to be at the forefront of providing tailored liquidity solutions to our sell-side partners and their clients.”

Cboe’s SI public quoting service provides a mechanism for registered SIs to meet their MiFID OTC pre-trade transparency requirements. Cboe has offered the SI public quoting service since 2013 and has seen demand increase as a results of MiFID II with 27 SIs now signed up to utilise the service. The SI quote data is available through one market data feed via Cboe’s BXTR trade reporting facility, the largest in Europe handling approximately 60% of all OTC trade reporting across the region.

Cboe’s SI connectivity solution includes standardised market data and order entry interfaces, which reduces connectivity costs and provides interaction via a technology provider considered to be trusted and reliable. This enables SIs, such as Sun Trading, to leverage Cboe technology to quickly on-board and service clients to a hosted, bilateral matching environment, which is separate from the Cboe Recognised Investment Exchange (RIE) or Cboe Approved Publication Arrangement (APA). Cboe facilitates the bilateral interaction between SIs and their counterparties/customers to enable their SI-operated matching activity. This allows SIs to communicate quotes to clients and then facilitate matching processes.

As it relates to trade reporting, all trade reports associated with the SI regime are required to be reported in accordance with MiFID II reporting rules and flagged as SI reports. The SI can opt to utilise automatic submission of trade reports to the Cboe APA, which is seamlessly interfaced to the bilateral matching.

Cboe’s approach to MiFID II has been to bring new products and services to the market to help market participants navigate the challenges and opportunities presented by MiFID II. Cboe’s SI Services is one example of this approach, along with the Cboe LIS and Periodic Auctions book, two products designed to respond to the new needs of market participants in light of the MiFID II regulatory changes.

Source: Cboe