EU trading venue definition could crush innovation, fear bank execs
Widening scope of regulated firms could undo progress in fixed income electronification and increase costs
In late January, Europe’s markets regulator published its opinion on the definition of a multilateral system and asked for comment from the industry. The consultation lays out the European Securities and Markets Authority’s ideas on what constitutes such a trading venue and the firms that would need to seek authorisation.
Banks are worried that if Esma’s definition is too broad and captures a wide net of vendors, it could ratchet up the cost of trading, stifle innovation in fixed income and
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