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.
Several documents published by the UK government outlined major plans, including details on the sweeping changes to MiFID II requirements.
Analysis from the UK’s regulator has said that dark trading, which the EU has restricted under MiFID II rules, can reduce costs for investors.
An analysis from the EU regulator revealed that the LIS waiver was most commonly used, with ETFs accounting for around 64% of the turnover executed under the waiver.
ESMA has made several recommendations in its report on the MiFID II review, but a poll from Rosenblatt Securities suggests the buy-side is not quite on the same page as the regulator.
Initial responses to the MiFID II review consultation reveal that asset managers are keen for a consolidated tape before any major changes to the rules are implemented.
As traders navigate market volatility, study from Liquidnet finds that continuous lit volumes have jumped in March as percentage traded in auctions declines.
ESMA is considering removing certain transparency waivers which would make the DVCs redundant, or lowering the threshold market-wide to further restrict dark trading in Europe.
An analysis from TABB Group has found dark trading volumes are the highest since MiFID II was introduced, despite summer slowdown.
Analysis by TABB Group finds that dark pools volumes reached the largest share of on-exchange in April since before MiFID II was implemented.