MiFID II introduces a mandatory trading requirement (Trading Requirement) for certain MiFID derivatives contracts to be traded on a regulated market (RM), a multilateral trading facility (MTF), an organised trading facility (OTF) or an equivalent third country venue (TC Venue) (together a Relevant Trading Venue). An investment firm that acts as a systematic internaliser (SI) is not a Relevant Trading Venue for these purposes. Please see our earlier alert on trading venues.
The TC Venue regime may also become relevant to UK platform operators in light of the UK’s vote to leave the European Union (known as Brexit).
MiFID II will also introduce a mandatory trading requirement for equities, which we will cover separately in a later alert.
This diagram contains an overview of the Trading Requirement.