[ P R E D I C T I O N S S E R I E S 2 0 2 3 ]
We should hopefully get clarity in the early part of 2023 on where the European Council , Parliament and Commission stand on key issues regarding proposed dark and systematic internaliser thresholds and the consolidated tape ( CT ). However , it ’ s unlikely we ’ ll see any agreement reached until mid-year or later . This will depend on whether a compromise can be reached between those looking to compete with the UK versus those considering more inwardlooking policies . Regardless , changes are not likely to kick in until 2024 . Separately , the UK ’ s Financial Conduct Authority ( FCA ) will hopefully provide some clarity on several of its proposals , including the UK ’ s version of the CT . In the interim , the EU and UK will have to contend with a number of operation hurdles in 2023 , including the end of the SEC ’ s no-action letter on “ hard dollar payments ” for research , which kicks in mid-year and readying for the introduction of T + 1 settlement in the US which is currently scheduled for Q1 2024 . Liquidity trends will likely continue on their current trajectory as alternatives challenge the incumbent exchanges for market share and the primary Close remains under competitive pressures . Retail will also likely continue to be a topic of discussion into 2023 , including whether the EU will impose an outright ban for payment for order flow . And finally , I hope ESG continues to be part of the discussion regarding the improvement of trading workflows and the wider execution business throughout next year . James Baugh , head of European market structure , Cowen Execution Services Ltd
Next year will be a critical period for regulation in European equity markets . Approaching two years after the UK formally left the EU , the Bloc is still contemplating the future of regulatory alignment with the UK . Despite recent market earthquakes , the UK
Issue 74 // thetradenews . com // 89