A regulatory shakeup for securities trading

Published: October 25, 2022

With MiFID II and MiFIR now coming under review Europe’s trading landscape could become more efficient and transparent. Having gone live at the beginning of the year the Settlement Discipline Regime that provides a set of common requirements for central security depositories in the EU should reduce the number of failed trades and attract more investors.

The securities trading landscape across Europe is becoming more complex than ever before. Faced with a slew of regulatory updates, an increased push towards digitisation, and the fallout from Covid-19, many firms are struggling to stay abreast of the changes. 

“The compound effect of these challenges is complex for capital market players,” Vikesh Patel, head of securities strategy at SWIFT, tells EMEA Finance. “In this environment, the need has never been greater to re-evaluate how the post-trade industry operates and to transform the way capital market services are provided.” 

From a regulatory standpoint, the biggest change in recent years has been the introduction of the Markets in Financial Instruments Regulation (MiFIR) and Second Directive (MiFID II) in 2018. These guidelines were designed to improve the transparency of trade reporting, while making markets more efficient and resilient. 

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