What is a systematic Internaliser MiFID II?

What is a systematic Internaliser MiFID II?

What is a Systematic Internaliser? As defined in Article 4(1)(20) of Directive 2014/65/EU (MiFID II), a SI is an investment firm which executes client orders OTC (or off exchange) on its own account on a frequent, systematic and substantial basis.

What is pre trade transparency MiFID II?

Pre-trade transparency is a requirement within the Markets in Financial Instruments Regulation or Mifir, accompanying the Markets in Financial Instruments Directive, for European Union trading venues and market-makers to publish offered, executable quotes before a trade is complete.

What is dealing on own account under MiFID?

Dealing on own account is trading against proprietary capital resulting in the conclusion of transactions in one or more MiFID financial instruments. Dealing on own account involves position-taking which includes proprietary trading and positions arising from market-making.

What is reportable under MiFID II?

The transaction reporting obligation under MiFID II/MiFIR captures: financial instruments which are admitted to trading or traded on a trading venue or for which a request for admission to trading has been made, financial instruments where the underlying is a financial instrument traded on a trading venue, and.

Is a systematic Internaliser a market maker?

Systematic internalisers (SIs), traditionally called market makers, are investment firms who could match “buy” and “sell” orders from clients in-house, provided that they conform to certain criteria.

What is MTF and OTF?

The main difference between OTFs and MTFs is that the former can only offer non-equities, whereas MTFs can offer equities and non-equities. An OTF can also only be operated by an investment firm, while an MTF can be run by an investment firm or market operator.

What is pre-trade transparency?

The purpose of pre-trade transparency is to give investors access to information on current orders and executable quotes before the trade is executed, in order to aid with price formation and help investment firms and banks to provide best execution.

What are pre-trade activities?

Pre-trade activities consists of all those steps that take place before order gets executed, Post trade activities involve order matching, order conversion to trade and clearing & settlement activity.

What is MiFID II regulation in simple terms?

MiFID II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry, especially after the 2008 financial crisis.

What are the MiFID 2 requirements?

The main objectives of MiFID II include the pursuit of harmonised regulation across EU financial markets, increased competition between EU financial markets, ensuring appropriate levels of investor protection, and strengthening of supervisory powers. This paper provides a summary of the key aspects of MiFID II.