Controversial auction systems face regulatory intervention in Europe if ESMA finds the mechanism does not operate in the spirit of MiFID II.
Tag: Periodic auctions
Decision on tightening of periodic auctions due in coming months as MiFID II loophole concerns linger
ESMA will publish its findings on periodic auctions in the coming months and will make a decision on whether to recommend changes to how they operate.
In-depth analysis of Turquoise Lit Auctions suggests broker priority allocations on LSEG’s periodic auction could be as low as 0.06%.
The FCA appears to take a more relaxed approach to periodic auctions, while asset managers and other regulators remain concerned about their lack of transparency.
ESMA chair Steven Maijoor says watchdog is carrying out a ‘fact-finding’ exercise on periodic auctions and highlights competitive advantage for SIs.
Heads of trading at asset management firms expressed concerns around addressable liquidity on periodic auctions.
Only 26% of traders believe dark liquidity will shift towards lit venues under MiFID II regime in Europe.
Research from ITG shows equity trading volumes falling for dark MTFs as volume caps take hold.