28 November 2015


Retired Member

1,294Posts 4,402,742Views 1,543Comments

Oh, for some goal-line technology!

19 June 2014  |  2294 views  |  0

With the new technology in place for the World Cup in Brazil, long and unsettled disputes about whether the ball was in or out are a thing of the past. Discussing the scope of MiFID II with some market participants, I really wish we had an equivalent technology in financial markets.

MiFID II states that certain firms dealing on their own account are exempt from MiFID II, while explicitly excluding DMA users from this exemption (MiFID II Article 2(1)(d)). Does this ‘exemption from the exemption’ imply that all DMA users across the globe fall within the scope of MiFID II? Thinking extraterritoriality, this would force a large number of non-EU trading firms active in EU markets to get registered under MiFID II – or perhaps go back to good old voice trading.

One possible argument against that interpretation can be found in Article 1 (Scope). Here it says that only third-country firms working through the establishment of a branch in the Union are in scope of MiFID II. To me, logic suggests that I can only be exempt from something if I’m in scope in the first place. Since non-EU DMA users without an EU branch are not part of MiFID II to begin with, they shouldn’t be caught later by the exemptions of the exemptions. Whether this is the last word regarding DMA and MiFID scope remains to be seen. Certainly an interesting point to follow and one that will undoubtedly test the regulators’ refereeing skills.


TagsTrade executionRisk & regulation

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Retired

Big Data Pitfalls: The Amateur Data Scientist

26 October 2015  |  1621 views  |  0  |  Recommends 0 TagsInnovation

Reflections on FinovateFall: Mobile, Money and Millennials

24 September 2015  |  1082 views  |  0  |  Recommends 0 TagsPaymentsInnovation

Interoperability: Prerequisite for Next Generation of Mobile Money

08 September 2015  |  1901 views  |  0  |  Recommends 0 TagsPaymentsInnovation

Think More Broadly: Banks CAN Monetize Cash Transactions

31 August 2015  |  1564 views  |  0  |  Recommends 0 TagsPaymentsInnovation

Software development in the retail FX Industry

28 August 2015  |  386 views  |  0  |  Recommends 0 TagsTrade execution

Retired's profile

job title
member since 2014
Summary profile See full profile »

Retired's expertise

What Retired reads
Retired writes about

Who's commenting on Retired's posts

Ketharaman Swaminathan
Brendan Burge
Astrid Mitchell
Balasubramaniam GD
Tony Ballardie
Graham Seel
Bjorn Soland
John Candido
Gregg Weintraub
Stanley Epstein
Charmaine Oak
Roy Vella