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Systematic Internaliser rules delayed

The start of the rules around Systematic Internalisers for non-equities under MiFID II has been delayed, following the release of this press release and this updated questions and answers document from ESMA.

A systematic internaliser is defined under MiFID II as:

an investment firm which, on an organised, frequent systematic and substantial basis, deals on own account when executing client orders outside a regulated market, an MTF or an OTF without operating a multilateral system;

The definition of “frequent, systematic and substantial” is defined by certain thresholds for non-equities, including derivatives and emissions allowances, the level and market size of which is to be defined by ESMA. Some of these figures will not be published until August 2018 and the rules will thus not start until September 2018.

Systematic Internalisers are required to abide by certain organisational rules, and also fully comply with “transparency reporting” under MiFID II.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on energy and commodity regulation. He has more than 20 years of experience in energy and commodity trading, credit, risk and financial technology. He has delivered a series of trading, credit and risk solutions to a wide variety of oil majors, power and gas companies and investment banks. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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