The FCA issued its first MiFID II consultation paper (CP 15/43) on 15 December 2015, principally on issues related to secondary market trading of financial instruments. The matters under consultation included proposed new rules and changes to existing rules governing:

  • Trading Venues – including regulated markets, multilateral trading facilities (MTFs) and a new type of trading venue, the organised trading venue (OTF) – including in:
    • The Recognised Investment Exchanges sourcebook (REC).
    • The rules for MTFs in chapter 5 of the Market Conduct sourcebook (MAR).
    • New rules for OTFs in a new chapter 5A of MAR.
  • Systematic Internalisers.
  • Transparency, including pre-trade transparency waivers and post-trade transparency deferrals.
  • Reporting of market data.
  • Algorithmic and high frequency trading requirements.
  • Passporting and UK branches of non-EEA firms.

The FCA noted that some of the points in the consultation may be impacted by forthcoming EU legislation and guidance that is as yet unpublished.