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"Thousands of firms" could quit EU trading 

June 23, 2014
William Mitting, FOW

Mifid II plans could force thousands of foreign firms out of Europe

Provisions within Mifid II to regulate direct electronic access could result in thousands of non-EU firms ceasing trading on European derivatives markets.

The European regulator Esma is currently consulting on the technical standards that will form the basis of the implementation of the Markets in Financial Instruments Directive or Mifid II.

Central to the intentions of European regulators is the tightening up of regulation around the provision of direct electronic access (DEA).

Under the current Mifid II text all firms trading on European exchanges through a DEA agreement could be required to be regulated under Mifid II, which among other onerous requirements would necessitate that firm having a physical presence in Europe.

This would mean that thousands of foreign firms, including hundreds of US CTAs and other hedge funds could cease trading on European markets.

Read More: FOW

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