MiFID II set to cast its net worldwide

The current MiFID II draft suggests that trading venues have to fulfil the transaction reporting for non-EEA exchange members. While it is understandable that regulators want to ensure complete records of all trading activity within Europe, the operational burden could be far-reaching.

Currently, exchanges rely largely on trading interfaces to collect information from their members, but these were never designed for transaction reporting. Most importantly, some of the required information is not available when the order is submitted to the exchange. A short sale flag, for example, is usually determined elsewhere and long after the trade occurred.

Looking at the bigger picture, I start to worry about the extraterritoriality aspects of MiFID II. As discussed previously, non-EEA firms run the risk of being caught in MiFID II’s net, and even if they decide to become a full exchange member they face hurdles such as transaction reporting. It looks like MiFID II will leave few firms unaffected, even from a global perspective.

Leave A Comment

Copyright © 2017 Fidessa group plc. All rights reserved.

The information contained within this website is provided for informational purposes only. Fidessa will use reasonable care to ensure that information is accurate at the time it is made available, and for the duration that it remains on the site. The information may be changed by Fidessa at any time without notice. We also reserve the right to close the website at any time. No representation or warranty, expressed or implied, is given on behalf of Fidessa or any of its respective directors, employees, agents, or advisers as to the accuracy or completeness of the information or opinions contained herein or its suitability for any purpose and, save in the case of fraud, all liability for direct, indirect, special, consequential or other loss or damages of whatever kind that may arise from use of the website is hereby excluded to the fullest extent permitted by law. Any decisions you make based on the information in this website are your sole responsibility and information on the website should not be relied upon in connection with any investment decision.

The copyright of this website belongs to Fidessa. All other intellectual property rights are reserved.

Reproduction or redistribution of this information is prohibited except with written permission from Fidessa.