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 recommendations, developed with JDX Consulting, are based on insights gained from 25 organisations and over 60 people representing the listed derivatives marketplace.
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.
Goldman Sachs, JP Morgan and UBS part of almost a dozen firms which took part in the strategic investment.
A survey by FIA has found that 23% of firms see fragmentation of markets as the most concerning impact of Brexit on the derivatives market.
CME Group had previously been ranked second largest in terms of trading volume, losing first place to the National Stock Exchange of India last January.
FIA has welcomed the CFTC’s rapid response to the coronavirus pandemic, which includes no-action relief from certain regulatory requirements.
Reporting of derivatives transactions under EMIR has proved problematic for firms and regulators, as trade groups call for a standardised approach.
The NSE of India traded 6 billion contracts in 2019, up 58% from the year prior, compared to 4.83 billion contracts traded at CME Group.
Don Bryon formerly led products for Fidessa’s derivatives trading platform.