Investment firms find potential PRIIPs loophole

By Hugo Bromley November 14, 2019, Practice Insight from IFLR Investment firms are looking to change the status of semi-professional investors in the latest workaround to emerge from the Packaged retail and insurance-based investment products (PRIIPs) regulation. PRIIPs’ requirement...

E.U. prepares tweak to MiFID market rules after industry backlash

By Philip Stafford November 13, 2019, Financial Times Brussels is preparing to retune some of its MiFID II markets rules from next year, less than three years after implementation, following a wave of criticism from investors and regulators over...

How MiFID II is slowly killing the trade

By Alice Tchernookova November 14, 2019, Practice Insight from IFLR Although recent reports showed MiFID II has helped make savings and improve conditions for end investors, many argue its impact on their activity and the E.U. market as a...

Meet Your (Market) Maker: Europe’s ELP SIs Gain Ground

By Tim Cave, TABB Group Originally published on the TABB Forum Sources of equity order flow continue to shift away from the traditional bulge bracket toward new, non-bank electronic market-makers, which are taking advantage of MiFID II’s systematic internalizer...

Swaps Missing From MiFID II Reporting

By Shanny Basar November 11, 2019, Markets Media At least €800bn (€750bn) of notional in vanilla cleared euro/US dollar interests rate swaps is missing each week from MiFID II transaction reports according to derivatives analytics provider Clarus Financial Technology....

Asset management: how safe is your job?

By Jennifer Thompson November 9, 2019, Financial Times Will your job exist five years from now, or even in 12 months? For most people working in fund management the answer has long been a resounding yes. full article

EMIR v. MiFID II: clearing and trading obligations align

By Alice Tchernookova November 7, 2019, Practice Insight from IFLR When the European Market Infrastructure Regulation (EMIR) refit was introduced earlier this year, the lack of clarity as to how it aligns with MiFID II was a major concern,...

Industry has lost interest in MiFID II

By Hugo Bromley November 6, 2019, Practice Insight from IFLR After two years of fervor over the implementation of MiFID II, interest has now begun to decline across the industry as firms wait for a number of regulatory reviews,...

Market Surveillance Compromised by MiFID II Reporting Failures

By Monica Summerville, TABB Group Originally published on the TABB Forum The U.K.’s Financial Conduct Authority has warned that inaccurate or incomplete transaction reporting under MiFID II could hinder its ability to uncover market abuse. TABB Group head of...

SEC grants three-year extension to MiFID II relief period

By Hayley McDowell November 5, 2019, The Trade U.S. brokers will be able to continue charging clients separately for research and analysis, as implemented under MiFID II in Europe, for another three years. The U.S. Securities and Exchange Commission...

MiFID II in the U.S.: Complexity cost

By Stephanie Scwartz-Driver November 1, 2019, IPE The E.U.’s MiFID II directive has quietly stirred up two kinds of challenges in the U.S.: the unbundling of trading commissions, particularly the payment for research; and then resolving who exactly is...

ESMA consults on commodity derivatives reforms

By James Langton November 5, 2019, Investment Executive The European Securities and Markets Authority (ESMA) issued a consultation paper today on its rules setting position limits in the commodity derivatives markets. These measures were introduced in an effort to...

MiFID II: what are minor non-monetary benefits?

By Hugo Bromley October 30, 2019, Practice Insight from IFLR Nearly two years after the implementation of MiFID II, the definition of a minor non-monetary benefit is still not clear, several sources have told Practice Insight. Under MiFID II,...

Why smaller asset managers are on the prowl for M&A deals

By Owen Walker October 26, 2019, Financial Times Competitive pressure and rising regulatory costs have spurred mergers and acquisitions in the U.K. investment market recently. While consolidation has long been predicted, few large deals have taken place so far....

U.K. watchdog says keep retail and institutional investors apart

By Sebastian Cheek October 28, 2019, International Adviser The Financial Conduct Authority chief executive has floated the idea of separating retail investors from institutional funds in the wake of Woodford Investment Management’s collapse. Speaking to U.K. newspaper The Times,...

Swedish regulator claims MiFID II decreased bond transparency

By Margaryta Kirakosian October 24, 2019, Citywire Selector Finansinspektionen has criticized the decreased transparency in bond trading following the implementation of MiFID II. The Swedish regulatory body made an official statement following analysis of the impact of the transparency...

MiFID II increases depression and inequality across the market

By Alice Tchernookova October 24, 2019, Practice Insight from IFLR MiFID II is and will certainly remain one of the biggest chunks of E.U. market regulation for years to come. While many argue it’s had a positive impact on...

U.S. firms face MiFID II research unbundling’s eternal conundrum

By Hugo Bromley October 23, 2019, Practice Insight from IFLR U.S. firms will have to decide how to respond to increased demand for research unbundling in the coming months but are unlikely to move directly to a P+L [profit...

Clearing reforms set to ‘disrupt’ asset management

By Eva Szalay October 21, 2019, Financial Times Global regulators might have delayed completion of a major reform of derivatives trading rules by a year, but currency markets are already changing in anticipation. One aspect of the reform that...

TISA Assesses Vendors for MiFID II Reporting Solution

By Josephine Gallagher October 16, 2019, Waters Technology A not-for-profit industry body tasked with easing regulatory reporting requirements is currently selecting a vendor to build a centralized reporting platform. The Investing and Savings Alliance (TISA) will announce by November...

ICMA Wants E.U. Consolidated Tape For Bonds

By Shanny Basar October 17, 2019, Markets Media The International Capital Market Association, a trade body, said a low or minimal cost consolidated tape of raw transaction data would benefit the cash bond market in the European Union. In...

ESMA rebukes FCA for poor handling of derivatives data under EMIR

By Hayley McDowell October 17, 2019, The Trade The U.K.’s financial watchdog has fallen behind its E.U. counterparts when it comes to quality controls and analysis of vital derivatives data under EMIR, according to the European Securities Markets Authority...

MiFID II in September: All Eyes on Auctions

By Tim Cave, TABB Group Originally published on the TABB Forum While European equities volumes rebounded somewhat in September, overall trading activity remained below last year’s pace. But closing auctions saw record participation. TABB Group’s Tim Cave looks at...

FCA assures ‘pragmatic approach’ to MiFID & EMIR reporting supervision as Brexit looms

By Hayley McDowell October 14, 2019, The Trade The U.K. financial watchdog has said it will take a ‘pragmatic’ approach to the supervision of MiFID transaction reporting and EMIR trade reporting requirements upon the advent of Brexit. In a...

Algo trading innovations stoke fear despite increased popularity

By Emma Olsson October 11, 2019, bobsguide Once feared by traders and regulators alike, attitudes towards algorithmic trading have changed. The development of more sophisticated algorithms, advances in artificial intelligence (AI), and an increasingly regulated market have shifted perspectives...

Analyst numbers and company research hit by E.U. rule change: survey

By Joice Alves October 14, 2019, Reuters Fewer analysts are covering British companies and the quality of their reports has declined since the introduction of European Union regulations aimed at increasing transparency in financial markets, according to a survey...

More investors wanting in on Europe-domiciled ETFs

By Paulina Pielichata October 14, 2019, Pensions&Investments A need for greater flexibility given market uncertainty, increased volatility and intensifying regulatory scrutiny is creating demand for ETFs from European investors. Assets in European Union-domiciled ETFs grew to €741 billion ($842...

EC official: supervisors must manage Brexit trading disruption

By Philip Alexander October 7, 2019, Risk A European Commission official has put the onus on supervisors to deal with any trading disruptions in the event of a no-deal Brexit – shutting down hopes of a legislative fix. Almoro...

ESMA considers expansion of MAR to include spot FX market

By Hayley McDowell October 3, 2019, The Trade European Union authorities are considering a move to bring foreign exchange spot trading in scope of the region’s Market Abuse Regulation (MAR). As part of a review of the regulatory framework,...

The rise of independent research outfits

By Scott Langley October 3, 2019, MoneyWeek Call it the sell-side’s Project Fear. Early 2018 saw the introduction of the E.U.’s Markets in Financial Instruments Directive II (MiFID II). Thousands of pages of new rules governing the financial sector...