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Matthew McLoughlin, head of trading, Liontrust
First month of the year will be a big one
The optimist in me hopes that finding liquidity
will not be an issue and that the LIS and sub-LIS
execution venues will operate as predicted. I am
fairly confident that after the first few weeks we
will know where the liquidity is reverting to and
hope that the fragmentation that has been rightly
highlighted is not as bad as first thought. Within a
couple of months conversation will switch from dark
pool caps & liquidity to RTS 27 and RTS 28 and how
the available data should be utilised. Then, dare I say
it, on to MiFID III discussions. On a lighter note, pric-
es of winter sun holiday will be low in January 2018,
so get yourself a bargain if you are brave enough to
leave the office during the first weeks of the new
regulatory regime!
Mark Hemsley,
president, Cboe Europe
The year of adjusting to a new equities market landscape
As we move into 2018, it’s going to be all about
understanding and adjusting to the new liquidity
landscape in the equities market. With the double
volume caps coming into effect and the broker
crossing networks closing, that volume will need to
find a new home and, in the short term, I see the lit
markets as the beneficiaries of that flow. With many
stocks capped out of the dark pools at the start of
the year, I expect we will see a sharp uptick in trading
in periodic auctions given this service provides pre-
EMS/ OMS prices
to cause a shock
Sean Sullivan, chief revenue officer, LiquidityBook
One of the underappreciated changes that MiFID
II is ushering in is around EMS/OMS pricing, as
brokers will no longer be able to pay transaction-
ally on behalf of their buy-side clients since that
will be considered an inducement. OMS’ have
historically been very ‘sticky’ once installed for
two reasons: first, replacing such a critical piece
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Winter 2017
trade transparency for the amount likely to trade in
the auction and minimal market impact, similar to a
dark pool. We’ve seen a big uptick in block trading in
2017 and I expect that will continue to accelerate into
2018 as buy-side firms continue to directly manage
their order flow on block trading platforms. I think
the landscape will continue to evolve over the course
of the year and we’ll see systematic internalisers
come into their own towards the end of the year as
firms continue to assess these new venues.
of software to the investment process is a big lift,
and second, since the sell-side incurs many of the
hidden costs associated with them, the buy-side
might not have always known just how expensive
they were. Now that that second factor will be
removed, we think we’ll see quite a bit of churn in
the space.