Trading industry taking increasingly quantitative approach to market testing
Dutch Authority for Financial Markets and London Stock Exchange Group are both developing agent-based simulation environments for testing.
Regulation
Buy-side firms could face increased scrutiny of their trading practices under new supervisory guidelines
New guidelines published by ESMA and the European Banking Authority will allow for an assessment used to take supervisory measures to address risks and concerns among investment firms.
Mifid II ESG regulation amendments come into force today, but are firms prepared?
The amendments come as part of the EU’s objective to meet the UN Sustainable Development Goals, but data suggests many firms are struggling to meet the compliance requirements.
Citadel Securities loses ‘Flash Boys’ appeal
A federal court has ruled that the SEC’s decision to approve a controversial type of market order from IEX Group was lawful, in the latest twist of the Flash Boys drama.
Concerns over fixed income deferral times as liquidity dries up
Latest Mifid II amendments recommend a four-week deferral time for post-trade reporting on large bond transactions – but is it enough, given the current drought in fixed income liquidity?
Lessons learned from Flash Boys
Following the recent dismissal of the so called ‘Flash Boys Case’ made against exchanges for favouring high frequency traders, Annabel Smith explores how Michael Lewis’ original novel has shaped the market... and why it drove asset managers to take legal action.
ESMA updates guidance on algorithmic trading
The regulator has updated its Q&As on Mifid II and Mifir market structure topics to clarify guidance on automated trading functionalities and compliance when using third party systems.
Cat among the pigeons? New report outlines the latest Mifid II amendments
A new draft report on Mifid II amendments confirms plans to ban payment for order flow (PFOF) in Europe, as well as removing dark pool caps and supporting a pre-trade consolidated tape, among others. The TRADE explores these legislative updates in detail to provide a comprehensive summary of the proposed changes.
Supervisory authorities set out potential measures to protect resilience among critical third parties
A discussion paper released by the Bank of England, Prudential Regulation Authority and the Financial Conduct Authority looks to combat financial stability concerns related to third-party service providers.
FCA chooses BMLL to access deep market insights
The financial regulatory body will utilise Level 3 data and analytics from BMLL to better understand how markets behave.