The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

True Innovation?

By Chirstian Voigt, a Senior Regulatory Adviser at Fidessa

The recent slew of exchange announcements introducing new dark trading facilities in response to MiFID II would appear to suggest that the regulation has triggered a whole raft of innovations. But is that what’s really happening here?

Euronext tells us it is planning to introduce a new liquidity discovery service building on its existing iceberg orders. Looking at the detail, this appears fairly similar to the Volume Discovery Order announced shortly before by Deutsche Boerse. While Deutsche Boerse can certainly claim to be the first to publish its iceberg extension plans, these may not be quite so “new” after all. An academic paper authored by past and present Deutsche Boerse employees discussing this very idea was posted online in 2008, long before we knew about MiFID II.

BATS Europe is promoting its partnership plans with BIDS Trading to provide a MiFID II compliant way to interact with buy-side IOIs. While the technical details under the hood might differ, it bears some resemblance to the SIX-Liquidnet partnership SLS – launched back in 2011 – which is another example of an exchange partnering with a buy-side block trade network.

We could argue whether any of these initiatives are new innovations or not, but let’s not forget that even the Apple iPod wasn’t the first of its kind. Sometimes, true innovation is just the better timing of a good idea.

Related content

WEBINAR

Recorded Webinar: Managing the transaction reporting landscape post Brexit: MiFID II, SFTR, EMIR

The transaction reporting landscape has, for many financial institutions, expanded considerably in size since the end of the UK’s Brexit transition period on 31 December 2020 and the resulting need for double reporting of some transactions to both EU and UK authorities. It has also changed dramatically following the UK government’s failure to reach equivalence...

BLOG

Capital Group Joins Plato Partnership

Investment manager Capital Group has joined Plato Partnership, the not-for-profit with a focus on equity market structure and operations, as a founding buy-side member. The firm joins Plato’s ranks of buy-side members including Axa Investment Managers, Baillie Gifford, BlackRock, Fidelity International, Norges Bank Investment Management, Union Investment, Liontrust, Legal & General Investment Management, Janus Henderson,...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that will be held in June 2021 with an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

The Data Management Challenges of Client Onboarding and KYC

This special report accompanies a webinar we held on the popular topic of The Data Management Challenges of Client Onboarding and KYC, discussing the data management challenges of client onboarding and KYC, and detailing new technology solutions that have the potential to automate and streamline onboarding and KYC processes. You can register here to get immediate...