Citadel Securities Sees Risks in EU's MiFid II Overhaul

The transcript discusses the concerns and expectations surrounding the implementation of new trading venue rules, comparing the US and European markets. It highlights the risks of not achieving the expected market shifts and benefits, such as competitive pricing and transparency. The impact on clients, particularly in terms of costs, is a major concern. The timing of the implementation is debated, with insights from the US experience suggesting it is not too soon.

What is one of the main concerns about the new trading venues in Europe?

• They are only beneficial for large corporations.

• They are not technologically advanced.

• There is a lack of clarity on how they will function.

• They are too expensive to implement.

How does electronic trading benefit liquid benchmark products?

• It slows down the execution process.

• It increases the complexity of transactions.

• It enhances price discovery and execution speed.

• It requires more manual intervention.

What is a key factor for clients regarding the shift to electronic trading?

• The aesthetic design of the trading platform.

• The geographical location of the trading venue.

• The availability of customer support.

• The cost and burden of implementation.

Why is operational readiness important for the upcoming changes?

• It ensures that clients can execute trades smoothly.

• It allows for more complex regulations.

• It reduces the need for electronic trading.

• It increases the cost of trading.

What has been the US experience with the market structure implemented for electronic trading?

• It has decreased market competition.

• It has not been implemented yet.

• It has been largely unsuccessful.

• It has led to a need for rule adjustments.