For Systematic Internalizers, Volumes Only Tell Half the Story

Ever since the revised Markets in Financial Instruments Directive, or Mifid II, came into force on January 3, 2018, there has been growing interest in Systematic Internalizers (SIs), entities designed to capture client trades executed against a broker’s own book. These aren’t new—SIs were created under the first iteration of Mifid to increase transparency in trading outside regulated markets. However because of the presence of dark pools and broker crossing networks, they never really took off.