The association said the European Commission’s definition of PFOF in its MiFID II amendments is vague and leaves potential loopholes for those trying to skirt the new rules.
The European Commission and ESMA have overhauled the Mifid II and Mifir regulations including moves to reduce dark volume caps to 7% and discourage volumes from SIs.
The buy-side are being urged to prepare for the introduction of the mandatory buy-in regime, despite there being potential for a two-to-three-year delay in the controversial aspect of a new regulation.
European Commissioner intends to minimise short-term risk of disruption through the extension.
The deal has won conditional approval from Brussels after the Commission launched an investigation into the transaction due to competition concerns in September.
Delay suggested to avoid a collision with the final EC legislative proposal for the review of CSDR and the expected entry into force of the current CSDR settlement discipline regime.
Lobbyists highlight concerns around the market impact of simultaneous close-out of positions at UK CCPs, market fragmentation and lack of liquidity at EU CCPs, and increased costs.
Despite its involvement, NatWest was not fined as it revealed the cartel, while Bank of America, Natixis and Portigon also evaded penalties.
Deutsche Bank blew the whistle on the cartel and so was not fined alongside Bank of America, Credit Agricole and Credit Suisse despite having traders active in the scheme.
The agreement follows months of stalemate in discussions between the two entities regarding UK-EU equivalence across the financial markets.