MiFID II

Recent Articles

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  06.07.2023

  FCA publishes final guidance on the UK trading venue perimeter: key issues for market participants

  On 5 July 2023, the Financial Conduct Authority (“FCA”) published a Policy Statement (PS23/11) on the final version of its new guidance on the UK regulatory perimeter with respect to trading venues. The guidance is in the form of questions and answers (Q&As), which will form part of the Perimeter Guidance manual in the FCA Handbook and will come into force on 9 October 2023. The aim of the guidance is to clarify the FCA’s interpretation of the definition of a “multilateral system”, which is the “trigger” for the need to be authorised as a trading venue...

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  05.05.2023

  FCA confirms changes to UK equity markets transparency regime and finalises implementation timetable

  In PS23/4: Improving Equity Secondary Markets, the Financial Conduct Authority (FCA) has confirmed a range of targeted changes to the UK’s post-trade transparency regime, pre-trade transparency waivers and tick size regime for equity instruments that it consulted on in July 2022. The introduction of the new designated reporter (DR) regime will also affect trading in non-equity instruments. The FCA also provides an update on potential further reforms to operational resilience standards for trading venues and the retail service provider model.Firms will be pleased to see that the FCA has listened...

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  29.03.2023

  ESMA Public Statement on derivatives on fractions of shares

  On 28 March 2023, the European Securities and Markets Authority (ESMA) published a Public Statement on derivatives on fractions of shares. Fractional share trading has risen in popularity in the UK and European markets in recent years, enabling retail investors to get direct exposure to tech companies and other issuers whose shares may be relatively expensive and which have traditionally been more frequently accessed indirectly through mutual funds. This exposure can be achieved through a trust-based or “co-ownership” model, under which multiple clients each have a beneficial claim...

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  14.10.2022

  ESMA Guidelines on suitability updated to take into account sustainability factors, risks and preferences of the clients

  Firms (that are inter alia investment firms and credit institutions) (i) providing investment advice or portfolio management or (ii) selling or advising clients in relation to structured deposits have to provide suitable personal recommendations to their clients, in particular to their retail clients, or they have to make suitable investment decisions on behalf of their clients. In order to match clients with suitable investments, Firms should establish policies and procedures to ensure that they consistently take into account: (i) all available information about the client necessary to assess...

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  18.03.2022

  The Wholesale Markets Review – no “big bang”

  Regulatory perimeter for trading venues. Although the Government recognises the need for greater clarity in this area, it is intended that the FCA will consult on new guidance in the first instance, rather than the Treasury bringing forward amendments to the definition of a “multilateral system”, the concept of which underpins the trading venue regulatory perimeter. Removal of some restrictions on MTF and OTF operators. The Government believes that it would be appropriate to remove the matched principal trading restrictions for investment firms operating a multilateral trading facility...

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  02.02.2021

  The new prudential regime for investment firms: key points from the first FCA Consultation Paper

  Key points to note from the Consultation Paper What is covered in the Consultation Paper and what is missing? The Consultation Paper includes the first tranche of draft rules that will form part of a new single prudential sourcebook in the FCA Handbook for investment firms called “MIFIDPRU”. We expect that the process of simplifying and bringing the rules together in one place will be welcomed by many investment firms. The Consultation Paper covers some aspects of the application of the MIFIDPRU rules (i.e. which firms are subject to the rules and when), investment firm groups and prudential...

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