Bloomberg Markets | February 13, 2018
Here’s another quirk from the early days of MiFID II: algorithmic traders like Virtu Financial Inc. are deliberately opting not to use a pricing advantage.
Systematic internalizers, the new breed of lightly regulated trading venue ushered in by this year’s European regulatory overhaul, aren’t subject to MiFID’s “tick-size” regime governing the minimum increment for stock pricing. Traditional stock markets have feared this would give the venues run by Virtu and more than a dozen other companies an unfair leg up.Read more >
Markets Media | February 01, 2018
Euronext, the pan-European exchange operator, is extending large-in-scale trading to commodity futures as new regulations have boosted block trading volumes.
MiFID II, the regulation which came into force in the European Union last month, places volume caps on trading of 4% of daily volume in an individual stock on any single dark venue as well as 8% of total average daily volume across all European dark pools. There are waivers for large-in-scale (LIS) orders and trading in auctions which has boosted volumes in block trades and periodic auctions.Read more >
The Trade | January 25, 2018
Agency brokerage and technology vendor ITG registered a new record in value traded on its block crossing network in Europe this month as traders continue to seek block liquidity under the new MiFID II regime.
The POSIT Alert block crossing system crossed £1 billion in value traded on 24 January, up 30% from the previous record set in November last year.Read more >
The Trade | January 16, 2018
Extensive preparation efforts across the industry paid off when MiFID II came into force on January 3, as major mishaps were few and things mostly went as planned. As a testament to the level of preparedness of both the buy-side and sell-side, ITG saw little deviation from the norm in client activity—with clients using similar types of algorithms for execution and continuing to find valuable liquidity through electronic and other means.
Aside from the expected changes to the liquidity landscape— broker crossing networks (BCN) replaced by systematic internaliser (SI) structures, a halt to bid/offer trading under the reference price waiver, and periodic auctions volumes seeing a significant uptick—it was mostly business as usual, which was a promising sign for the year ahead.Read more >
Bloomberg Markets | January 09, 2018
The European Union markets regulator announced a surprise delay until March of its plan to curtail the trading of potentially hundreds of stocks in dark pools under MiFID II, dealing a blow to a key pillar of the law.
The European Securities and Markets Authority late on Tuesday blamed incomplete data it received from trading venues for delaying its list of stocks that would have been caught by MiFID’s dark pool caps. The partial data would have resulted in what it called “a biased picture” of the markets had the agency reported as expected on Jan. 9.Read more >