The European Securities acOnd Markets Authority (ESMA), the EU’s securities markets regulator, has today launched a consultation seeking input from market participants on the impact of requirements under MiFID II/MiFIR regarding algorithmic trading, including high-frequency algorithmic trading.
#ESMA is seeking input on the impact of requirements regarding #algorithmic trading under #MIFIDII/#MIFIR. ⏳ 12 March 2021
Covers:
✔️ authorisation
✔️ provisions for algorithmic and high-frequency tradershttps://t.co/vLy7GSoXb2 pic.twitter.com/LrNcM8fHbs— ESMA – EU Securities Markets Regulator ?? (@ESMAComms) December 18, 2020
The Consultation Paper covers the overall approach towards algorithmic trading, in particular:
- the authorisation regime;
- provisions for algorithmic and high-frequency traders; and
- provisions applicable to trading venues allowing or enabling these market participants.
Furthermore, the consultation paper addresses crisis-related issues, such as circuit breakers, and contemporary issues closely linked to algorithmic trading, including the deployment of speedbumps and the sequence of trade confirmations to individual participants versus the public disclosure of transactions.
MiFID II/MiFIR requires the European Commission (EC) to present a report to the European Parliament and the Council, after consulting ESMA, on a number of areas under MiFID II/MiFIR including algorithmic trading.
Next steps
The consultation closes on 12 March 2021. ESMA, based on the input received, will prepare the final review report for submission to the EC by July 2021. Respondents to the consultation are encouraged to provide relevant information, including quantitative data, to support their arguments or proposals.
Source: ESMA
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
As Technology Evolves, Asset Managers Adapt and Innovate
Citi Changes Organizational Structure
SEC Charges Virtu for Disclosures Relating to Information Barriers
ICE Futures Singapore Partners with CoinDesk Indices
Related articles
-
TT Splice provides industry-first functionality for synthetic multi-leg spread trading.
-
Modern wheels can incorporate many different data points.
-
Asset managers leave money on the table when using VWAP algos for low-urgency orders.
-
The firm is leveraging its newly acquired quantitative trading expertise to generate new client algorithms.
-
The algo provides an alternative to VWAP for minimizing implementation shortfall.