Intermediaries Increasingly Needed as Hurdles Persist – EVIA

By Louisa Chender August 17, 2018, Global Investor Group Intermediaries could play an increasingly important role as uncertainty around Brexit and other regulatory challenges persist, according to a trade body. “Increasing the number of hurdles in the industry will...

Trade Outsourcing Picks Up

By Rob Daly August 17, 2018, Markets Media More and more buy-side firms are re-examining way to improve their workflow and operational efficiencies as market regulations like MiFID II eliminate many past practices as research bundling and soft dollaring....

MiFID II Impact on Small and Mid-Cap Brokers Fuels Consolidation Talk

By Hannah Murphy August 18, 2018, Financial Times The U.K.’s small and mid-cap stockbrokers have begun to feel the impact of new European markets rules, prompting predictions of consolidation across the industry. Groups including WH Ireland, Cenkos and Arden...

Tradeweb Unveils New Platform for U.S. Equity Options

By Aziz Abdel-Qader August 16, 2018, Financial Magnates Tradeweb will support electronic trade execution of equity options on U.S. stocks, as well as the major indices. Clients will be able to place several dealers in real-time competition for options,...

Tradeweb Reaps Direct, Indirect Benefits of MiFID II

By Louisa Chender August 16, 2018, Global Investor Group The introduction of MiFID II has been a significant, but not the only, driver for a significant increase in derivatives volumes on Tradeweb this year, according to the firm. Tradeweb,...

New Prudential Regime for Investment Firms – How Are MiFID Managers Impacted?

By Michael Chambers, Cordium Originally published on the TabbFORUM and on the Cordium ‘GRC Insights’ blog Designed to be simpler and more proportionate to a firm’s operations, the EC’s new prudential capital framework requires the vast majority of investment...

MiFID II: Market Explores Process Trade Options

By Lizzie Meager August 15, 2018, Practice Insight from IFLR The range of options provided by trading venues is easing market participants’ compliance with MiFID II and making the venue space more competitive. Some old pre-crisis practices are emerging...

Own Goal: MiFID II Reduces Transparency in Some E.U. Markets

By Samuel Wilkes August 14, 2018, Risk So far, those hoping for more transparency in European financial markets have little reason to celebrate the arrival of new trading rules, which promised to deliver just that. Investors and dealers in...

Comment: How the Market Has Adapted to MiFID II

By Lee Olesky, Co-Founder and Chief Executive of Tradeweb Markets August 10, 2018, Financial Times Overall, we see MiFID II as another major step in the electronification of trade execution and workflow in fixed income and derivatives. Over the...

MiFID II DEA Rules “Suitably Clear” – Legal Expert

By Louisa Chender August 13, 2018, Global Investor Group The rules on direct electronic access (DEA) under MiFID II are “suitably clear” and the industry should not need further clarification, according to a legal expert. Refuting claims that some...

Boutique Researchers Hit by E.U. Markets Rules

By Hannah Murphy August 12, 2018, Financial Times “Aggressive lowball pricing” from investment banks is beginning to squeeze boutique research providers’ business models following the introduction of new E.U. markets rules, an industry survey has found. More than a...

Rates Derivatives Trading Surges on Tradeweb

By Ross Lancaster August 8, 2018, GlobalCapital Much of the growth came from swaps though, with the Markets in Financial Instruments Directive II giving a big boost to volumes. The legislation has mandated for over-the-counter derivatives such as interest...

Poor MiFID Data Could Condemn OTC Market to the Dark

By Samuel Wilkes August 8, 2018, Risk The transparency rules contained in a sweeping set of European trading regulations known as MiFID II were meant to be a gift to investors. But, over seven months into this new information...

ESMA to Treat Pension Funds as Exempt Despite EMIR/MiFID

By Louisa Chender August 8, 2018, Global Investor Group The European financial watchdog has told national regulators to relax their supervision of pension funds with respect to a timing gap that leaves the firms temporarily subject to trading and...

How Smaller Firms Have Avoided MiFID II’s Horror Stories

By Terri-Ann Williams August 8, 2018, CityWire Selector Smaller firms are not has hard by MiFID II as many feared and having a smaller client base has actually made the process more manageable. That is the view of Patrick...

Research Evaluation: How to Evolve the Broker Vote Under MiFID II

By Emma Garvey, Red Deer Originally published on the TabbFORUM While the broker vote has traditionally been a fundamental part of commission management between buy- and sell-side firms, the requirement under MiFID II to apply a robust and defensible...

Adapting to the New Reality – Tabb’s 2018 Institutional Equity Trading Study

By Dayle Scher, Tabb Group Originally published on the TabbFORUM Intensifying regulatory requirements and the shift to passive investing have increased the pressure both on the buy-side and the sell side. Tabb Group’s 2018 U.S. Equity Trading Study examines...

Under the Water: How MiFID II’s Dark Caps Have Changed Trading

By Hamad Ali August 3, 2018, Waters Technology If you pour a cup of water into the Atlantic, would the sea level rise as a result? Probably, yes. But because of the size of the ocean it would be...

Order Management Costs Coming Out of the Dark

By Rick Baert August 6, 2018, Pensions&Investments The cost of order management system connections for securities trades, often unknown to money managers and others on the buy side, is coming out of the shadows, sources said. That’s due to...

MiFID II Trading Suspensions “Damaging” to Investors – ICMA

By Louisa Chender August 2, 2018, Global Investor Group The International Capital Markets Association (ICMA) has called for regulators to assess the impact of some MiFID II trading suspensions before imposing them, arguing they may be damaging to investors...

ESMA Omits Derivs from SI Calculation Data

By Louisa Chender August 2, 2018, Global Investor Group The European Securities and Markets Authority (ESMA) has omitted derivatives data for systematic internalizer (SI) calculations in line with its plan to postpone the compliance date for certain instruments to...

ETFs: Priming the $5 Trillion Pump

By Josephine Gallagher August 2, 2018, Waters Technology Exchange-traded funds have seen extraordinary growth in recent years, thanks to a confluence of investor appetite for passive investment, a friendly regulatory structure and aggressive marketing from providers of these products....

IOSCO Urges Venues to Disclose Volatility Control Triggers

By Louisa Chender August 1, 2018, Global Investor Group Trading venues have been urged to communicate information to eachother when volatility controls are triggered following a series of extreme volatility events over the past few years. In its final...

MiFID II: How Banks Are Defending Fee Nondisclosure

By Lizzie Meager August 1, 2018, Practice Insight from IFLR MiFID II has made debt capital markets (DCM) less transparent since January 3, particularly on fee nondisclosure. Sell-side argue that neither issuers nor investors are interested in the information...

Booming CFD Market Faces Reckoning as New E.U. Rules Come into Force

By Philip Stafford and Hannah Murphy August 1, 2018, Financial Times High-profile advertising campaigns and celebrity endorsements have helped Europe’s €1tn contracts-for-difference market flourish in recent years, luring retail investors eager to try their hand trading currencies, equities and...

MiFID Accused of Squeezing Boutiques Out of the Industry

By David Thorpe July 31, 2018, FTAdviser Regulation is helping major investment houses while pushing some boutiques out the industry, James Sullivan, managing director and fund manager at boutique asset manager Miton Optimal, has warned. He said large providers...

MiFID II Drives Liquidity Drought as Broker Research Coverage Falls

By Mike Sheen July 30, 2018, Investment Week Almost eight months after the introduction of MiFID II, the regulatory framework has already contributed to a reduction in trading liquidity and broker research across most areas of the market. MiFID...

MiFID II at Six Months: Trading Moves to the Close

By Tim Cave, Tabb Group Originally published on the TabbFORUM As MiFID II passes the six-month mark, shifts in equity market liquidity appear to be settling down after a period of significant disruption. While block trading leveled off in...

U.S. Asset Managers Lop Research

By Rob Daly July 25, 2018, Markets Media Whether U.S.-based asset managers service European clients or not, MiFID II legislation has buy-side firms of all stripes re-evaluating their business models and relationships with the sell-side. In research conducted by...

CFA Institute Warns on SIs

By Shanny Basar July 24, 2018, Markets Media The CFA Institute has warned that attempts to remedy systematic internalisers have not worked despite the new venues not increasing transparency as intended under European Union regulations which went live this...