Over one year since the separation of payments for execution and research was introduced via MiFID II in Europe, Hayley McDowell examines the unintended consequences of unbundling for buy- and sell-side institutions and finds an industry still coming to terms with the change.
Linear Investments insisted that no instances of market abuse went undetected or unreported, but FCA says oversight of surveillance systems was insufficient.
SimCorp research finds only 7% of buy-side firms are ready to comply with the incoming rules in September.
As UK and European regulators clash over post-Brexit share trading rules, it could spell further divergence for post-trade arrangements.
Goldman Sachs is handed largest penalty to date by the FCA after the watchdog found errors in more than 200 million transaction reports.
UnaVista TRADEcho will provide MiFID II and EMIR reporting in the EU and the UK.
Major UK stocks including Vodafone and Coca-Cola would have to be traded within the EU in ‘no-deal’ Brexit scenario under the share trading obligation.
The FCA hands UBS largest MiFID transaction reporting fine to date after more than 130 million reports were found to be inaccurate.
When it comes to seeking liquidity under MiFID II, a survey of senior traders has found that periodic auctions and conditional order types are the most useful.
Regulators and policymakers exploring AI for market surveillance face their own challenges around unstructured data use and retaining relevant talent.