[ I N
D E P T H
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M I F I D
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cept which allows reporting rules to be machine-readable
and executable.
First hurdle
MiFID II hit its first major hurdle just one week into the new
regime when the European Securities and Markets Author-
ity (ESMA) delayed the implementation of its dark trading
rules, which will introduce double volume caps (DVCs),
triggering bans on certain types of dark trading when a
transaction accounts for 4% of the total activity on a single
dark venue, or 8% of total trading market-wide.
A statement from the European watchdog on 9 January
detailed that the data it had received from trading venues in
the six days since the new regulations came into force was
insufficient for a “meaningful and comprehensive calcula-
tion” of the caps. That data was finally published in early
March and showed a total of 744 instruments in January
and 643 in February this year hit either the 4% or 8% dark
trading threshold.
Within the first week of the DVCs, which eventually came
into force on 12 March, trading in dark pools halved and
I be?
ID I
F
i
M
o
t
s
t
ndmen
t will ame
fican
How signi
3%
es
ant chang
No signific
63%
32%
3%
tain
nges to cer
Small cha islation
leg
aspects of
.5
MiFID 2
MiFID 3
Source: Audience poll at The TRADE’s MiFID II: Check In event
Issue 55 // TheTradeNews.com // 39