End ‘senseless’ ban on midpoint trading, asset managers urge

Investors decry European rule that forces them to trade some equities in whole tick sizes

midpoint-increments-1220199265.jpg

Midpoint should be a valid execution price and investors permitted to trade at a half tick in Europe on all venues, say buy-side firms in fresh calls for regulators in the UK and EU27 to re-examine the tick size regime.

Trading heads also criticised the existing rule as counterintuitive and harmful in forcing them to trade at either the bid price or offer price if the spread is a single tick. The regime applies to equity trades under a set threshold.

“The tick size regime precluding the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: