Hayley’s Comment: Misguided intervention
Matthew McLoughlin, head of trading, Liontrust Asset Management
Looking back on 2018 I think we can all agree that we achieved a great amount as an industry. That being said, I don’t see things slowing down in 2019. Brexit will obviously be in the headlines and will continue to take up a lot of resource on buy-side, sell-side and execution venues alike. Regulatory and political developments, particularly on periodic auctions, tick-size regimes, mid-point trading and SIs have the capacity to change market structure yet again in 2019.
The US securities regulator has approved a controversial pilot scheme that would see major restrictions on pricing across the biggest stock exchanges.
The Securities and Exchange Commission (SEC) unanimously approved the one-year programme, known as the transaction fee pilot, as part of a review of the ‘maker-taker’ trading system, which typically provides a rebate to traders adding liquidity to an order book, with an access fee then charged when liquidity is removed.
The EU financial regulator has moved forward with plans to amend the tick size regime under MiFID II to combat concerns
A new systemic risk survey from the DTCC has shown that almost half of respondents believe Brexit will pose a