MiFID

A place to discuss MiFID

Daniel Schlaepfer CEO at Select Vantage Inc

All eyes turn to SEC as EU finally bans PFOF

Last Thursday, the European Union said that member states and the European Parliament had reached a deal on updating the bloc's MiFID-related securities trading rules. The EU has been reviewing its rules to reflect advances in trading technology as well as the departure of the United Kingdom from the bloc, presenting new competition to EU markets. ...

03 July 2023 /regulation /markets

Daniel Schlaepfer CEO at Select Vantage Inc

One small step for the EU, one giant leap for retail investors

Following lengthy disagreements between Europe’s various decision makers surrounding the practice of Payment for Order Flow, the EU Commission – the European Union's executive body – has proposed a compromise through which PFOF will be banned, albeit in a targeted manner. While the European Parliament had proposed banning the practice outright, so...

12 June 2023 /regulation /markets

Kirston Winters MD, MarkitSERV at IHS Markit

2021: Brexit, no equivalence and the day of the SEF

The transitional period ended on 31 December with no relief for European Union (EU) firms on the derivatives trading obligation (DTO) from the European Commission (EC) and only limited adjustments from the United Kingdom (UK). This left many firms with conflicting and incompatible DTOs in the EU and the UK without equivalence (albeit based on iden...

21 January 2021 /regulation /wholesale

John Cant Managing Director at MPI Europe Ltd

Will MiFID research arrangements change again?

I have been doing some informal polling on impact of the EU's latest proposed changes to the existing MiFID II Research regime across various forums in the last few days. As you probably know, these changes would create a narrowly defined exception authorising the joint payment for execution services and research on small-cap (defined as up to a m...

01 September 2020 /regulation /wholesale

Konstantin Rabin Head of Marketing at Kontomatik

Unbounding exemptions for MIFID II and benefits for SMEs

The unbounding exemptions for MIFID II have mostly to do with the costs of research services from asset management companies. Due to the very clear monetary difference between the services provided by EU and US-based managers, companies often feel cheated or not obligated to provide the payment for services rendered. To put it more into perspect...

04 June 2020 /regulation

Anne Plested Regulation at ION Markets

Wider adoption of MMT encouraged

The Securities and Markets Stakeholder Group (SMSG) recently advised ESMA to promote wider adoption of the Market Model Typology (MMT) post-trade data standards. The SMSG, which facilitates consultation between ESMA, its Board of Supervisors, and stakeholders, is encouraging a wider use of MMT to address MiFIR transparency. The MMT initiative is ...

29 April 2020 /regulation /markets

Konstantin Rabin Head of Marketing at Kontomatik

What Does 2020 Mean for MiFID II?

There have been many changes within the economic landscape in Europe and the United Kingdom since the first agreement that launched the Markets in Financial Derivatives (MiFID) protocols in 2007 were signed. MiFID was meant to provide a standard set of rules by which regulators in every EU country (including the UK at the time) would oversee firms...

28 April 2020 /regulation

Konstantin Rabin Head of Marketing at Kontomatik

ESMA introduces TC-CCP classification system - Another move to block risky trades?

The European Securities and Markets Authority has introduced a new system that will classify Third Country Central Counterparties according to tiers. The tiers will be assigned to the CCPs according to their roles with a member state. What this means is that if, for example, South Africa continues its crucial fruit trade with the Netherlands, it w...

15 November 2019 /regulation /inclusion

John Cant Managing Director at MPI Europe Ltd

Easy to say, but hard to deliver

I attended the Substantive Research Unbundling Uncovered MiFID research conference this week. The panels at this event were made up of a mix of market participants and vendors. The mix made for some entertaining exchanges between brokers and investment managers on the true value of research. One broker opined that some asset managers may feel that...

13 November 2019 /regulation

Ivy Schmerken Editorial Director at FlexTrade Systems

U.S. to Study Effects of MiFID II Research Unbundling

U.S. lawmakers authorized a study focusing on the provision of investment research for small issuers, a sign they are wary of the U.S. adopting the European Union’s MIFID II unbundling rules which have brought sweeping changes to the research business. On July 9, the House of Representatives passed a bipartisan bill requiring the Securities and Exc...

31 July 2019 /regulation