Commission consults on amended MiFID II systematic internaliser definition
Published: 10 July 2017
The European Commission has invited feedback to its draft delegated regulation amending Delegated Regulation (EU) 2017/565 on the organisational requirements and operating conditions for investment firms and defined terms, specifically regarding the the definition of “systematic internalisers” within the latter Level 2 Regulation.
The draft delegated regulation has been deemed necessary in light of ambiguity surrounding what constitutes “trading on own account when executing client orders” and to limit the risk of circumvention of MiFID 2 distinction between bilateral and multilateral trading.
The draft delegated regulation proposes that any riskless back-to-back matching transactions by investment firms outside a trading venue will not be “dealing on own account” for the purposes of the MiFID 2 definition of a “systematic internaliser”.
The deadline for responses is 19 July. If members have questions or comments, please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch.
