The year ahead promises to bring greater clarity to post-crisis regulation after 2013 witnessed consistent use of no-action relief from the Commodity Futures Trading Commission in the US, and implementation delays in Europe.
If MiFID II plans to cap dark pools prove unworkable then the European Securities and Markets Authority should advise the European Commission to rework the proposals, according to the UK’s senior financial markets regulator.
European Council proposals to limit the use of reference price waivers in MiFID II could limit choice and lower investor returns, according to dark pool operators.
BATS Chi-X Europe’s trade reporting service will not suffer the same fate as rival Markit Trade Reporting, which is to be closed next year, due to major differences in its business model.
As widespread buy-side demand increases for new electronic bonds trading platforms, institutional block crossing dark pool Liquidnet has indicated its interest in operating a fixed income venue, but said it has no firms plans at this stage.
Canadian dark pool rules designed to improve key functions of the lit market have depressed dark pool volumes, most keenly felt by a retail-focused alternative trading system operated by Alpha Group, a report from TABB Group has found.
European dark multilateral trading facility volumes have grown by 32.5% since the beginning of the year, indicating their popularity at a time when regulators are seeking to crack down on the practice.
A group of influential finance industry firms – including several global asset managers – have written to the European Parliament and Commission urging them to consider maintaining pre-trade transparency waivers with certain conditions.
Rules surrounding dark pools will be a major point of contention in today’s first major MiFID II trialogue meeting.
Deutsche Börse claims its deal with Liquidnet to promote block-trading in its Xetra MidPoint dark pool is working, despite a fall in volumes.