Nasdaq has called on the European Union to reconsider its rules on systematic internalisers (SIs) under new regulations coming online in January. The EU is set to introduce a series of measures that will force companies with more than €50m (£43m) worth of foreign exchange exposure into an S-corporation structure and require them to hold at SIs "will be allowed to offer marginally better prices to clients", said Nasdaq in a submission to the EU's executive body. It went on to say "this means SIs are extremely likely to capture significant trading flows". It warned that such a situation would lead to trade relocating to less transparent venues and liquidity drying up in public markets.
Nasdaq has called on the European Union to reconsider its rules on systematic internalisers (SIs) under new regulations coming online in January. The exchange company has said SIs, investment firms that make large-scale trades away from public markets, would have an unfair advantage under MiFID II rules. SIs "will be allowed to offer marginally better prices to clients", said Nasdaq in a submission to the EU's executive body. It went on to say "this means SIs are extremely likely to capture significant trading flows". It warned that such a situation would lead to trade relocating to less transparent venues and liquidity drying up in public markets.