Along with introducing more stringent transparency requirements, Mifid II will also introduces rules unbundling research costs from trades and improving trade execution standards.
Mr Holman said the rules requiring firms to explicitly charge for research costs were likely to affect equity trades far more than fixed income, as the idea of bundling research costs into the cost of a trade was a legacy issue mainly for the equity market. TwentyFour already uses third-party research providers and will meet such costs itself, he added.
The Mifid II changes in detail
Exchanges and investment firms trading over the counter will be required to make each transaction public as soon as possible, or at most within 15 minutes of execution. This timescale will drop to five minutes in 2020.
Data published will include:
• Trading date and time
• Execution venue
• Price
• Notional amount
Deferrals of 48 hours can be made for cases where the security in question has no liquid market, or when the size of the transaction is particularly large. Firms will also be required to provide pre-trade information regarding bid and offer prices, though waivers apply in the event that a market is illiquid or orders are particularly large.
IN NUMBERS
Jan 3 2018
Date on which Mifid II comes into force
15 minutes
Time in which most trades must be reported
