12 Oct

MiFID II Drives Growth in e-Trading

One of the main drivers of MiFID II was to increase transparency in Financial Markets, and as expected, this has resulted in more trades being done electronically.

This was one of the main reasons why we set up TransFICC when we did - more e-trading means a greater need for advanced connectivity solutions.

Saikat Chatterjee and Simon Jessop at Reuters have just released a piece about the growth of e-trading since the introduction of MiFID II at the start of the year.

They say, "The catalyst is MiFID II, ...which requires all interactions between trading counterparties to be captured, stored, and often even disclosed to markets."

Some stats -

  • Tradeweb has reported growth in European government bonds and corporate bonds of 31% increase (YoY ending August 2018)
  • Tradeweb has also seen a threefold increase in the volume of interest rate derivatives and a twofold increase in credit derivatives
  • CME Group has seen an increase of 18% in rates trades this year

The full article is here -