Latest Blog Posts

The Fifth Clearing & Settlement Plenary Meeting

Chris Skinner

Apr 03, 2013
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  We had our fifth plenary meeting of the Clearing & Settlement Working Group (CAS-WG) in March. The meeting covered all the latest issues, news and views, and was kicked off by Greg Caldwell, Chair of the Regulations Subject Group, who outlined the complexity of European and Global Regulations through this slide outlining the Rubik’s Cube of Regulations.   Between EMIR (the European Markets Infrastructure Regulation), Dodd-Frank, MiFID II (the Markets in Financial Instruments Directive), CRD IV (Capital Requirements Directive), MAD (Markets Abuse Directive) and more, the regulatory landscape is changing and complex. read more

MiFID II – Trade Automation, Part 2

Kiki Pentheroudaki, Capco

Apr 02, 2013
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  We have discussed the historic development of automated trading and how regulators are pushing high-frequency traders to become market makers. We now want to look at further ways to regulate automated trading under MiFID II. The impact of high frequency trading (HFT) flow on markets will also see continued attention from market participants and regulators alike. In 2012, significant regulatory attention focused on HFT, such as provisions in the European Parliament's version of MiFID II. read more

MiFID II – Trade Automation, Part 1

Kiki Pentheroudaki, Capco

Mar 27, 2013
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MiFID II is intended to regulate the use of automated trading to ensure a level-playing field for all market participants. In a two-part overview we will provide you with insight into how regulators are thinking. Part one focuses on the history of automated trading and MiFID’s proposals around market-making for high-frequency traders. Automated or algorithmic trading is used by a wide range of market participants. Profits from high-speed trading in American stocks were ca. $1.25 billion in 2012, 74% lower than the peak of about $4. read more

If it moves, tax it!

Anne Plested, Fidessa

Mar 27, 2013
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  The proposal for a Directive implementing enhanced co-operation in the area of financial transaction tax (aka the EU FTT), with its eye-wateringly broad scope, will have to be churned through the legislation mills PDQ if it’s to meet its overly ambitious timeline. The would-be tax applies to all transactions where a counterparty is established in one of the 11 participating countries, and to all transactions where the financial instrument is issued in one of those countries, regardless of where the transaction actually takes place. read more

A cry for help

Christian Voigt, Fidessa

Mar 25, 2013
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  More and more industry representatives are complaining about the politicisation of the rule-making process in financial markets. In Europe, politicisation has triggered some absurd episodes, such as the proposal for the greatest uncontrolled financial market microstructure experiment in the world (aka the minimum resting period of 500 ms) and the introduction of short selling bans in the face of an overwhelmingly crushing academic verdict against them. Do politicians really have the long-term interest of Europe at heart, or are they more concerned about vote-winning headlines? Regulators usually have extensive first-hand experience in financial markets and they are less restricted by election cycles. read more

Consolidated tape – work continues

Anne Plested, Fidessa

Mar 21, 2013
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  After endless discussions all over Europe, there is still massive confusion as to which European Consolidated Tape (ECT) model MiFID II will bring and when. Despite the uncertainty, the creation of a consolidated tape for equities remains firmly in the MiFID II text and on the buy-side’s wish-list. Behind the scenes of the ever-lengthening MiFID II timeline, and regardless of model, progress continues to be made to unearth the potential pitfalls and understand the impact of any consolidated tape implementation(s) – for example, within the FISD-chaired MiFID Real-time Transparency Group. read more

What to Ask When Choosing a Turret/Dealerboard System?

Matthew O'Donnell, IPC

Mar 18, 2013
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A Turret/Dealerboard system is a powerful communication tool with specific capabilities designed to meet the demanding needs of Financial Traders. It needs to function flawlessly in an environment that is intolerable to failures and any obstacle to increasing revenue. Let’s face it; it is a premium product in a niche market. Obviously the system needs the features and functions required, but when choosing a system I suggest that individuals look at the whole picture. The support and surrounds are equally important to the solution itself. read more

MAD as a March hare

Anne Plested, Fidessa

Mar 15, 2013
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The reviews of the Market Abuse Directive (MAD II) and proposed EU Market Abuse Regulation (MAR) continue to run their course through the European trilogue process, with final Level 1 agreement expected to keep pace with the MiFID review spanning out into the second half of 2013. MAD II and MAR will bring increased obligations on firms, including criminal sanctions, in the event of market abuse – intentional or otherwise. In the meantime, take a look at our MAD II at a glance for an overview of the existing regulation. read more