Nordea becomes first Nordic Bank to announce it will become a Systematic Internaliser

Regulatory updates

Article by: Nordea Markets

As a Systematic Internaliser, Nordea will assume full legal post-trade reporting obligations for our institutional clients

Nordea is committed to supporting our Nordic clients through the complex implementation of MiFID II (Markets in Financial Instruments Directive) and MiFIR (Markets in Financial instruments Regulation) by becoming a Systematic Internaliser for FX, interest rate derivatives and cash bond instruments traded on a trading venue from January 3, 2018.

With today’s announcement Nordea become the first Nordic bank to confirm that it will adopt the European Systematic Internaliser (SI) and as such, Nordea will assume the additional regulatory reporting responsibilities for our institutional clients.

In addition to our obligation to perform post-trade reporting when transacting with Retail and Corporate customers, Nordea has today decided to become a Systematic Internaliser and also assume this obligation on behalf of our Institutional customers.

As a Systematic Internaliser, Nordea will assume full legal post-trade reporting obligations for our institutional clients and remove their burden of post-trade reporting. For institutional clients, there will be no need to develop or implement any proprietary solutions to manage post-trade reporting when trading with Nordea.

Nordea’s decision to become a Systematic Internaliser will simplify and provide clarity for our institutional client’s when transitioning to the new EU regulation. In addition to the above, Nordea continues its commitment to our clients across the financial markets by maintaining its Systematic Internaliser status in cash equities.

“Our key ambition with becoming a Systematic Internaliser I is that we reduce the burden of MiFID compliance for our clients and ensure clarity when trading with Nordea“,

- Christopher Rees, Head of Markets FICC

What is a Systematic Internaliser?

Systematic Internalisers are investment firms which, on an organised, frequent, systematic and substantial basis, deal on own account by executing client orders outside a regulated market, multilateral-trading facility or OTF without operating a multilateral system. Article 4(1)(20) of MiFID II.

Systematic Internaliser Fast Facts:

  1.  

    Nordea will opt-in to become a Systematic Internaliser (SI) and will act as an SI from January 3 2018.

  2.  

    Nordea will act as an Systematic Internaliser in the following asset classes; FX, interest rate derivatives and Cash bond instruments traded on a trading venue.

  3.  

    Institutional clients trading with Nordea will not have to assume the regulatory burden or develop proprietary systems to manage post-trade reporting.

Get insights directly in your inbox

Sign up here to receive newsletters and learn more from our world in Nordea Markets.