On Wednesday 12 December, the European Commission adopted a delegated regulation setting new transparency requirements for investment firms, including systematic internalisers.
The objective: to ensure a level playing field between systematic internalisers and exchange trading venues.
Systematic internalisers are investment service providers who execute their clients' orders themselves by acting as proprietary counterparties in an organised, frequent and systematic manner and, therefore, trade outside trading venues.
Up to now, systematic internalisers were allowed greater flexibility in pricing shares, the Commission explains. With these new rules, they will continue to enjoy such flexibility when trading larger orders; however, for standard size orders, they will be bound by the same rules as trading venues.
The new rules also introduce a minimum variation in share prices when systematic internalisers quote share prices.
The proposal was made on the basis of a regulatory technical standard developed by the European Securities and Markets Authority (ESMA). The delegated Regulation will automatically enter into force within one month, unless the European Parliament or the Council formally objects. (Original version in French by Marion Fontana)