Investment firms hit by a raft of fresh red tape on transparency

Tim Wallace
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INVESTMENT firms were yesterday faced with 300 pages of detailed regulation on transparency and investor protection, which lawyers warned would be tough to digest.

The proposals cover the implementation of the EU’s markets in financial instruments directive (MiFID2), due to be introduced in 2016.

High frequency trading is one area that will be affected, with trading venues encouraged to impose fees on firms that cancel lots of orders. Dark pools also face limits, while new fees are being brought in on the sale of post-trade data.

Market participants have until 1 August to respond.

“The proposals include a very detailed set of parameters and complex measures but there is only a short window for companies to respond to the consultation so that could prove problematic,” said Etienne Dessy from law firm Linklaters.