Securities lending platform EquiLend is set to launch a Dublin-based multilateral trading facility (MTF) next week to ensure its European clients retain access to its Next Generation Trading platform once the UK leaves the EU on October 31.
The Irish platform will go live on 9 September, at which point all trading activities of EquiLend’s European-based clients (ex. UK) will move to the Irish MTF.
In a note to clients on the launch, EquiLend confirmed that members whose trading activities are moved to the Irish MTF will have the same access to liquidity they have now, but that their European activity (excluding the UK) will be transacted over to the Irish MTF.
EquiLend explained that it established EquiLend Limited as a separate legal entity in Dublin “in order to provide certainty for its members around Brexit”.
Central Bank of Ireland previously authorised EquiLend Limited to operate an MTF under the Markets in Financial Instruments Directive on 21 March.
The Irish MTF has its own market identifier code, which is a unique identification code used to identify securities trading exchanges, as well as a legal entity identifier.
Meanwhile, the existing MTF, which is based in the UK and operated by EquiLend Europe Limited, will continue to operate but with limited access to liquidity from the European Economic Area.
EquiLend added that to continue trading with EU counterparts, all its members will be required to become direct participants on the Irish MTF.
The firm said it is strongly urging 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. It added that, in the absence of completed legal documentation, come 9 September, bilateral relationships will be restricted to ensure trades do not cross execution venues.
