On January 3 2018, financial and commodities markets in the European Union will implement the latest Markets in Financial Instruments Directive regulatory package.
Commonly known as MiFID II, the new rules will regulate companies who provide services or perform certain activities linked to financial instruments and the venues where those instruments are traded.
MiFID II will impact TP ICAP in a number of key ways:
- It will reshape the trading landscape in the EU by requiring OTC broking to move into regulated trading venues.
- It will provide a new form of trading venue, the organised trading facility (OTF), which is suited to voice and hybrid broking models.
- It will require a step change in the amount of information that is being captured about market activity or shown to the market on a pre-trade or post-trade basis.
The vast majority of broking business undertaken by interdealer brokers in the EU is going to need to move into an trading venue and will be subject to the new rules.