EU prop firm capital crunch could hit market liquidity

Traders claim they would be put out of business by bank-style capital rules

Proprietary trading firms claim they will be put out of business if they become subject to bank-style regulatory capital rules in Europe from the start of January 2018 – a prospect that is also worrying some large exchanges, where non-bank traders are important liquidity providers.

In theory, there is a way out. All investment firms that come under the scope of the second Markets in Financial Instruments Directive (Mifid II) when it enters into force next year would also be subject to 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: