[ 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