E-traders prepare for MiFID II with new trade body

LONDON, Oct 13 (IFR) - Four of the biggest electronic fixed income trading venues have set up a new trade association to build a dialogue with regulators, with the introduction of MiFID II regulations just over two years away.

BrokerTec, MarketAxess, MTS and Tradeweb on Thursday founded the Electronic Debt Markets Association Europe, or EDMA Europe, to represent the interests of regulated e-trading venues.

Tradeweb is part-owned by Thomson Reuters, IFR’s parent.

Post-crisis regulation and capital requirements have forced banks to retreat from traditional dealing, reducing liquidity in the fixed income market and leading to the growth of e-trading venues that claim their technology can improve the matching of buyers and sellers.

Multilateral trading venues in a “heavily regulated industry” have historically had limited organised representation, said Simon Maisey, managing director and global head of business development at Tradeweb, who will be the group’s chair.

“With MiFID II deadlines fast approaching, it has become imperative that trading venues are able to have an active dialogue with regulators,” he said in a statement.

MiFID II, a European Commission directive due to take effect from January 3, 2018, will impose strict new communication, disclosure and transparency rules on venues where financial instruments are traded.

EDMA Europe said in its statement that membership was open to “all market participants that meet the established minimum membership criteria”, without elaborating on those criteria. (Reporting by Tom Porter)