EC angers Mifid zealots on equities trading loophole

Systematic internaliser networks will be addressed within the existing rules, says Dombrovskis

Valdis Dombrovskis of the European Commission
Valdis Dombrovskis: effectively took a stand that no changes will be made to the text of the regulation
Photo: Johannes Jansson/Norden.org/Creative Commons

The European Commission (EC) will not reopen new market rules to address what Parliamentarians are calling a loophole, which allows firms that are meant to trade bilaterally to connect in order to form multilateral trading networks.

Last month, letters were sent to the EC, based on concerns raised in Parliament about how some firms meant to operate bilaterally and take risk on balance sheet were seeking to circumvent the second Markets in Financial Instruments Directive (Mifid II) by setting up

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