[ T I M E L I N E
| T H E
F I R S T
14 November 2018
New figures find
that more than half
of capital markets
firms have stated
that they are not
currently producing
RTS 27 reports
in compliance
with MiFID II
best execution
requirements despite
having a legal
obligation to do so.
10 December 2018
Research from
Liquidnet finds that
assets managers
outside of Europe
have implemented
a global policy
for the separation
of research and
execution payments
as a result of the
changes introduced
by MiFID II,
with further
firms intending
to do so in future,
despite not having
a compliance
obligation to do.
38 // TheTrade // Summer 2019
5 0 0
D AY S
O F
14 December 2018
ESMA confirms
that it will
amend the tick
size regime to
combat concerns
that Brexit will
leave trading
venues in the EU
at a competitive
disadvantage,
and has put
the proposal to
the European
Commission.
9 January 2019
A regulatory
outlook report
from Deloitte
finds that
the research
unbundling
requirements
of MiFID II
will most likely
lead to further
consolidation
on the buy-
side, more
prominently
among smaller
firms which
struggle
to absorb
the costs of
research.
M I F I D
I I ]
[ T I M E L I N E
31 January 2019
The SI regime for
derivatives under
MIFID II is delayed
for the second time
by ESMA due to
“incomplete and
inaccurate data”,
with the regulatory
pushing back
implementation to
2020 at the latest.
17 January 2019 – ESMA
publishes the responses to its
call of evidence on periodic
auctions, with the majority of
market participants opposing
regulatory interference in how
the execution venues operate.
Many respondents, particularly
on the buy-side, instead
highlighted the proven benefits
that periodic auctions provided
investors, including the ability to
show natural liquidity, reducing
costs and helping firms achieve
best execution.
5 February 2019
ESMA
prepares for
the possibility
of a 'no-deal'
Brexit scenario
by announcing
plans to
temporarily
suspend
calculations for
vital MiFID II
rules including
the SI regime,
DVCs and bond
liquidity for a
period of two
months, should
the UK leave the
EU without a
deal.
| T H E
F I R S T
5 0 0
18 February 2019 – A report from
the CFA Institute finds that larger
buy-side firms have slashed
research budgets as a result of
MiFID II, some by as much as 11%
since the regime came into force,
while overall levels of research
sourced from investment banks
also saw a significant decline
over the period.
27 February 2019
The world’s largest
asset manager,
BlackRock, warns
EU policymakers
over the potential
threat to midpoint
trading in the
wake of regulatory
changes to
MiFID II and an
extension of the
tick size regime
to systematic
internalisers (SI),
periodic auctions
and block trading
venues, strongly
disagreeing with
assumptions
that the focus on
moving trading to
lit venues improves
transparency and
price formation.
D AY S
O F
M I F I D
I I ]
12 March 2019 – Research from WBR
Insights finds that the buy-side
have prioritised the use of periodic
auctions and conditional order types
to navigate liquidity post-MiFID
II more than any other technique
or strategy, despite continued
regulatory concerns over the
increased use of
such venues.
30 April 2019
ESMA delays
the publication of
further data for
the systematic
internaliser (SI)
regime, this time for
equity, and equity-
like, instruments
and bonds due to a
“technical issue”. The
data is eventually
published on 10 May.
20 March 2019 – ESMA
announces proposed
changes to the share trading
obligation under a ‘no-deal’
Brexit scenario, confirming
that 14 of the UK’s biggest
stocks would have to trade
on venues inside the EU,
meaning European banks
and buy-side firms will not
be able to trade the listed
UK shares. The FCA raises
concern over the move and
warns that the changes could
see widespread disruption to
trading across Europe.
Issue 60 // TheTradeNews.com // 39