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large-in-scale (LIS) activity dropped slightly across Europe
according to data from Thomson Reuters.
The Thomson Reuters March Share Reporter analysed
activity between 12-16 March displayed a clear indication
that volumes in dark pools are declining: Trading in dark
pools halved to 3.06% market share of on-book trading from
6.15%, while LIS trading fell slightly to 1.25% market share of
on-book trading from 1.43%.
The delayed implementation of the DVCs did not come as
a shock to the buy-side, who understood that the sheer scale
of the legislation and volumes of new data would likely cause
problems.
“There were always going to be issues with the initial im-
plementation of MiFID II,” Liontrust’s McLoughlin added.
“It was never going to be an easy; it’s an immediate change across
the industry. There are always glitches with something like this
before everything is ironed out”
MATTHEW MCLOUGHLIN, HEAD OF TRADING, LIONTRUST ASSET MANAGEMENT
“That was always going to happen because there is so much
involved and so much data needed to be compliant. It was
never going to be an easy; it’s an immediate change across
the industry. There are always glitches with something like
this before everything is ironed out.”
Looking forward
Just how long it takes for all the nuances and glitches of
MiFID II to be ironed out is a matter of conjecture depend-
ing on where people sit in the market. While much of the
discussion leading up to the introduction of the new rules
was focused solely on the 3 January implementation date,
there is still much more work to be done going into the rest
of the year and beyond.
Quantitative data won’t become available on how the
trading landscape has changed for some time to come – with
some estimating that it could take as long as 18 months to
40 // TheTrade // Spring 2018