Electronifying Block Trading: How to Trade in Size Under MiFID II

Unknowns abound under MiFID II, Europe’s new securities rulebook, which goes live in less than 60 days and rewrites the region’s rules on trading from top to bottom. But there is at least one thing to be certain about: Demand among buy-side firms for executing block trades electronically will be stronger than ever. European legislators have given large-in-scale (LIS) orders – the regulatory definition for venue-based block trades in Europe – special treatment under the rulebook, exempting them from controversial caps on dark pools to preserve the ability of investors to trade big orders away from lit markets with limited impact. In fact, electronic block volumes are already surging following the launch of new conditional block markets, which have forced investors to revisit how they trade large orders.

This TABB Group report, Electronifying Block Trading: How to Trade in Size Under MiFID II, looks at the size and growth of Europe’s block market, its potential for further expansion under MiFID II and some key characteristics of the new platforms vying for market share in this lucrative new battleground.