04 August 2009 News

 

FSA probing effects of industrialised trading

The FSA has confirmed that it has spoken to some 8 - 10 firms, including those on the sell-side, to establish the effect on the market of technological change and innovation in light of MiFID. Technology has industrialised trading of securities both internally and externally changing business models and the effects they have on the business.

Concerns have been growing in the industry about blurred lines between systematic internalisers, multi-lateral trading facilities and crossing networks, all of which can be regulated in different ways but all of which provide the secondary stock trading market. A number of sources have told Banking Technology that regulatory investigations are likely to lead to a change in the way internal crossing networks and other dark pools are regulated.

FSA spokesperson Joseph Eyre said that "We aren't looking to make a large announcement, this is not an investigation. A lot of the regulation in this area stems from Europe, primarily CESR, and it is important that we get the views of market participants on its effects."