Market participants at TradeTech have agreed that trading volumes have failed to shift to lit venues under MiFID II, but the regulation has led to unintended positive developments in the form of periodic auctions.
When it comes to seeking liquidity under MiFID II, a survey of senior traders has found that periodic auctions and conditional order types are the most useful.
EU policymakers are looking to extend the tick size regime to SIs, periodic auctions and block trading venues, but the buy-side is concerned about the potential impact this could have on trading at the midpoint.
The EU financial regulator has published responses to its call for evidence, revealing that the industry is firmly behind the use of periodic auctions.
John reviews the best of The TRADE’s coverage of regulatory issues over the past 12 months.
Controversial auction systems face regulatory intervention in Europe if ESMA finds the mechanism does not operate in the spirit of MiFID II.
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 TRADE looks at how the industry has adapted to the new trading environment and the major issues facing market participants following the implementation of MiFID II six months ago.
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.