Bloomberg Gets Dutch Approval for ARM and APA

Dutch regulators have signed off on Bloomberg’s final round of authorization for its Approved Publication Arrangement (APA) and Approved Reporting Mechanism (ARM), allowing it to continue servicing the EU27 market post-Brexit.

In the absence of a withdrawal agreement between the UK and European Union, the approval will enable Bloomberg to operate from Amsterdam, as a recognized EU legal entity regulated by the European Securities and Markets Authority (Esma), following the March 29 Brexit deadline. The Dutch entity will continue to offer reporting services to Bloomberg’s European clients, allowing them to publish quotes for pre- and post-trade transparency across various asset classes and meet transaction reporting requirements under the revised Markets in Financial Instruments Directive (Mifid II).

The latest announcement follows Bloomberg’s Jan. 15 authorization for its multilateral trading facility, BTFE, and Tradeweb obtaining approval to operate its trading venues and APA from Amsterdam, authorized the same day. Bloomberg selected the Netherlands as its European center for trading and reporting operations last year, and filed an application to the Dutch Authority for Financial Markets (AFM) in May 2018. 

“Bloomberg already operates an MTF, ARM, and APA in the UK, and that experience proved very useful in our application process with the AFM, since we were able to demonstrate a strong track record in delivering these services,” says Nicholas Bean, head of electronic trading solutions and CEO of Bloomberg’s Dutch entities.

Bloomberg has had offices in Amsterdam since 1996, with functions dedicated to editorial, and writing for its terminal and online platforms. Some sales activities for its financial products are currently operating out of the Netherlands on a weekly basis and to date, the firm has expanded its offices to accommodate Dutch-regulated entities. The newly based teams commenced at the start of the year and the firm is currently in the process of onboarding clients to the new MTF, ARM and APA systems. 

The news comes as a number of other venues and reporting firms—including MarketAxess, the London Stock Exchange Group, and Cboe—are still awaiting approval from the AFM or have yet to publicly announce its receipt. Many firms submitted their applications as far back as mid-2017 in preparation for the UK’s withdrawal from the EU, which will end Esma’s regulatory oversight in the UK.

Firms licensed as a European legal entity will benefit from so-called passporting rights across the European Economic Area, which permit cross-border investment activities and the provision of services within a single market. Firms hoping to continue servicing UK markets have to undergo a separate screening process to be authorized by the Financial Conduct Authority (FCA). Applications for FCA approval officially opened Jan. 7.