The consultation below is the first stage of moving Europe towards having the equivalent of the US SEFs, under MiFIR. It is likely that some of the products subject to the EMIR Clearing Obligaiton will also become subject to the Trading Obligation too. Anecdotally from a conference last week, the buy-side love SEFs, as they give them live prices they can execute at without any further phone calling or price discovery, making the trading process far more efficient.
The European Securities and Markets Authority (ESMA) has published today a discussion paper regarding the trading obligation under the Markets in Financial Instruments Regulation (MiFIR).
The trading obligation will move over-the-counter (OTC) trading in liquid derivatives onto organised venues thus increasing market transparency and integrity alike. MiFIR, which implements parts of the MiFID II framework, outlines the process for determining which derivatives should be traded on...