Banks Wrestle with Mifid II Derivatives Quoting Rules

Chris Davis explains why derivatives dealers are wary of new quoting requirements under Mifid II.

The Markets in Financial Instruments Regulation (MiFIR), along with its associated directive known as MiFID II, are only six months away from becoming law, yet banks are still unsure how to comply with the requirement to broadcast firm, executable quotes before a trade is completed. Their questions are basic: How long should the price be available? Can quotes be anonymous? Can they be adjusted for counterparty risk?

While the European Securities and Markets Authority (ESMA) says it plans to

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