The TRADE 56 - Page 55

[ I N T E R V I E W happened at TradeTech this year with the chairman of the Autorité des Marchés Financiers (AMF), who made his views on periodic auctions very clear to delegates. It wouldn’t surprise me if it is addressed in future. It’s only nat- ural that with such a tremendous change to the industry and market structure that there is a period of reflection where the industry looks back at everything. There’s also going to be a ‘look- back’ from a regulatory perspective around the implementation of MiFID II, so we could see some- thing then, but it’s a complex issue. We take in quotes from SIs and we have to analyse that behaviour very closely, but if there is any wrong-doing or any pre-matched business in those SIs, then it wouldn’t surprise me if regulators take a firmer look. If the debate | around SIs and the interaction with SIs has been relatively muted for bank SIs, I’d say client opinion on periodic auctions is tremendously split. Some clients are questioning whether firms have re-created a BCN and if they are therefore going to be under more scrutiny, while others say it’s a liquidity event and if the broker is happy, then they are happy. For Instinet, if it’s a credible venue with credible liquidity and it fits our execution policy and the needs of our clients, then we will provide access to it. HM: What has Instinet got planned for the rest of the year? RP: It’s going to be two-fold. Firstly we are going to continue to help other broker-dealers outsource trading capabilities where they are looking to do that, and secondly we will continue our focus on liquidity R I C H A R D PA R S O N S ] aggregation and the workflow side. Innovation around the block trad- ing space and innovation in terms of the aggregation of all of the different liquidity types, providing our clients with one entry point to various liquidity types. That seems to be the key driver and key message from our institutional clients at the moment. It’s about being able to navigate all of these new venues in a way that ensures minimum information leakage in an agency environment, which for us obviously plays a big part in that process, and I think that’s the clear direction that we are on. I don’t see us deviating from that at any point in the short-term. We will continue to build our data set and make informed trading decisions for our clients so that at the end of the day, Instinet can deliver execution performance. Issue 56 // // 55