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It is just over six months since the implementation of MiFID II and the findings from the SIX trader survey, conducted in April this year, make for interesting reading.
Notably, there is no consensus yet amongst traders on whether MiFID II can be deemed a success: 70% of surveyed traders believe that trading has become more transparent – a key goal of MiFID II. But paradoxically, only 26% believe that dark liquidity will shift to lit markets, highlighting the failure of a key aspect of the regulation.
Although MiFID and regulation remain a concern, it is no longer the single biggest challenge facing traders – the picture is far more mixed: reporting is the greatest concern (86%) under MiFID II, followed by transaction reporting (50%), and best execution reporting (36%).
Tony Shaw, Director London Office, Securities & Exchanges, SIX, says: “MiFID II was implemented with the goal of allowing asset managers to choose brokers based on quality of research. Given the complexity of the regulation, the impacts of MiFID II have undoubtedly been felt in the industry, but there is still much progress needed. This sentiment is reflected in the SIX trader survey, which highlights the lack of consensus among traders on whether MiFID II can be deemed a success”.
