[ A D V E R T O R I A L ]
“ There is some good quality liquidity in the SI regime that we access and we will continue to analyse the different venues.”
daily liquidity going through the SI regime. What we’ ve noticed is that the sizing of the SI regime is quite similar to the BCN regime at this stage: the median execution size is about € 4,500. There’ s a lot of work still to be done as to how the regime evolves and what the regulatory view of it will be going forward. It does also seem that in the very early days post DVC implementation SI activity is experiencing a significant lift.
Mark Pumfrey, head of EMEA, Liquidnet
Is it still too early to predict how the SI regime play out? MP: Those involved in the SI across the market, because the market is more disposed to trade like that as opposed to where it was 18 months’ ago.
Periodic auctions will also continue to see growth and we’ ve seen the start of that as there are a number of new venues in the market, which are certainly seen as important places for major players and the below-LIS business to find opportunities to do business.
Then of course there is the whole systematic internaliser( SI) regime. There is some good quality liquidity in the SI regime that we access and we will continue to analyse the different venues. As things stand you’ ve got to do quite a lot of work in cleaning up condition codes to see exactly what is genuine
Growth of Periodic Auctions
Millions
700
Up 96 %
600
500
400
Up 650 %
300
200
100
0 Pre MiFID II Post MiFID II Post DVC Source: Bloomberg, September 2017 up to and including 13th March 2017
Issue 55 // TheTradeNews. com // 19