IDX from FIA is the go-to event for listed derivatives markets in Europe and current political and regulatory developments make it a very interesting place to be these days. Here are our takeaways from our recent time in London attending IDX:
- While the inability of politicians to come to formal decisions about Brexit and this uncertainty is frustrating to all involved, no one is standing still and simply hoping for the best. Despite the costs, it’s a requirement to have options outside of England and this will certainly have a negative impact on The City the longer it’s dragged out.
- MiFID II has been the law of the land for nearly a year-and-a-half but it is still exhibiting some growing pains. Front and center, firms are struggling to meet monitoring requirements for RTS-6, which regulates algorithmic trading. This is likely to take some time to work out. Meanwhile, firms may find themselves in a tricky spot as they try their best to comply with obtuse regulations.
- As with the CFTC in the U.S., fines issued by the FCA in London are on the rise. The cost of non-compliance continues to go up and up and up.
- On a more positive note, the recent rally in cryptocurrency prices has brought with it a whiff of crypto-Spring, as a slew of innovative new exchanges, services, and products attempt to catch the crypto-wave.
Despite the headwinds from MiFID II and Brexit, strong volumes and new developments like crypto made for a lively and generally optimistic tone at IDX. Let’s hope we can maintain that energy in the months and years ahead.
Eventus Systems, Inc. offers one of the leading global trade surveillance and market risk platforms. Available as a cloud-based or real-time enterprise on-premise solution, the Validus platform provides sophisticated market surveillance and financial risk capabilities, enabling clients to solve some of the most pressing regulatory challenges. For more information, contact us at firstname.lastname@example.org.