MiFID II’s SI Regime: A New Liquidity Source in Europe’s Equity Market

Europe has started the final countdown to MiFID II, a new trading rulebook which will overhaul the way all securities trade in the region. In equity markets, an area of intense focus has been the systematic internaliser regime - a regulatory designation for firms that offer capital commitment to clients. Largely under-utilized under the first MiFID in 2007, MiFID II is expected to breathe new life into the regime, with ramifications for every firm in the equity market eco-system, including exchanges, brokers, proprietary trading firms, exchanges and the buyside.

This TABB Group report, MiFID II’s SI Regime: A New Liquidity Source in Europe’s Equity Market, examines prospective SI operators, the models they will adopt and expected usage of the regime, based on in-depth interviews with 20 buyside heads of European equity trading.