Algorithmic traders the world over are under the spotlight and there was plenty of discussion about the stricter controls being phased in by North American and European governing bodies.
As many of you will know, the first to discuss is Regulation Automated Trading, RegAt for short.
The proposed regulation will apply to all futures contracts algorithmically traded on US exchanges. Regulators hope this will reduce risk and drive stronger compliance across the industry.
MiFID II is even more talked about amongst the Israeli firms we’re working with. With similar intentions as RegAt, the original MiFID came into effect in 2007, promising to tear down the barriers associated with cross-border financial services within the European Economic Area.
Its successor’s objective is a more competitive, level playing field that protects investors. Transparency is the goal for regulators, especially within riskier marketplaces such as OTC (over-the-counter) trading.
So, what awaits? Extensive change. The extent of MiFID II’s effects are covered in depth by this law firm, but in short MiFID II and RegAT means modifications to trading methods, market access, client services, technology, people and the markets themselves.
There is little use putting your head in the sand. There is less than a year until MiFID II is implemented – 3rd January 2018. If you are active in Israel, now is the time to assess whether you have the necessary ‘connectivity trifecta’ to enable a smooth transition process:
A resilient global network, proximity to exchanges and secure data.
Let us know how we can help or whether you would like information on how we’re supporting other Israeli firms.
Learn more about MiFID II and RegAT >