Yesterday ESMA issued this letter to the European Commission accompanied by this press release, urging that the Commission cooperate in the closing down of a “loophole” that some are alleged in being used to circumvent obligations under MiFID II. It is alleged that certain brokers are running networks of systematic internalisers (SIs) rather than setting up as multilateral venues under the MiFID II rules, thus avoiding the more onerous requirements that arise from operating a venue. The Commission are urged to support a strengthening of the definition of the boundaries between an SI and multilateral venue via Q+As and other means. This article on The Trade News further examines the issue.