The UK’s Financial Conduct Authority (FCA) has opened a consultation that will help firm up its post-Brexit definition of a multilateral trading facility (MTF).
The announcement comes as part of the watchdog and HM Treasury’s wider Wholesale Markets Review (WMR) aimed at introducing approaches “better tailored to the UK market” post-Brexit.
Due to close on 11 November, the consultation will allow participants to contribute their thoughts on current guidance around the trading venue perimeter.
While the watchdog will not be modifying the actual perimeter via legislative change, it is seeking to clarify the definition of the venues through guidance in its Handbook. The FCA added that it was also seeking views on whether the trading venue regime could be made more proportionate to smaller firms.
“Further guidance on the trading venue perimeter will provide greater certainty regarding models where we do not intend trading venue requirements to apply – supporting innovation in our markets – while promoting competition and high standards by ensuring that models possessing the key characteristics of a venue are treated equally, within the framework of the trading venues regime,” the FCA said in a statement.
The decision follows a similar move by ESMA in January, which confirmed it would also be consulting on what constitutes an MTF in order to level the playing field under Mifid II regulation.
Defined as a system or facility where multiple buying or selling third party interests interact, European regulators are now looking to bring further clarification around request for quote systems and also execution management and order management systems.