Capital Markets Advisors

Thursday, March 3rd, 2016 by GEORGE BOLLENBACHER   In an earlier article I took a look at an unintended, but very real, conflict between two components of the EU market rule catharsis known as MiFID II/MiFIR – best execution vs pre-trade transparency. Now it’s time to look into another conflict, between best ex and the trading obligation. Let’s start with the rules themselves. Article 27 of MiFID II requires firms… Read More »

Friday, February 26th, 2016 by GEORGE BOLLENBACHER   Regulators have cast a rather harsh spotlight on the practice of ‘last look’ in the FX. So what does the future hold for last look. If it survives at all, you can be sure it will look and act very differently than it has in the past, says Capital Markets Advisors’ George Bollenbacher. Several developments on the legal front over the past… Read More »

Although a lot of ink has been spilled, and a lot of money spent, on getting ready for MiFID II, there is another regulation out there that is actually more dangerous, the EU’s Market Abuse Regulation, or MAR. Along with its sibling, the Market Abuse Directive, or MAD, they pose a double threat to market participants worldwide. The first threat has to do with timing. Although MiFID II is currently… Read More »

MiFID II includes both pre-trade transparency and best execution requirements. While commendable, though, these goals may create a very difficult situation for both customers and dealers: If regulators focus on pre-trade transparency, best execution will probably suffer; if they focus on best execution, transparency will probably suffer. In the rather picaresque story of MiFID II, it often looks as if each requirement has had its own wandering life, evolving independently… Read More »

Despite regulators’ goal of harmonizing global financial regulations, regional differences persist, and with the implementation of MiFID II in Europe, confusion is likely to intensify. George Bollenbacher, partner, Capital Markets Advisors, outlines the jurisdictional questions surrounding MiFID II and explores how the rules could impact both EU and non-EU entities. Speaking with TABB Group founder and CEO Larry Tabb, Bollenbacher discusses the uncertainties around MiFID II’s enforceability and the potential… Read More »

There are three parameters that govern the applicability – and thus the requirements – of various parts of MiFID II to market participants. But complicated criteria means crossing EU borders can be a dangerous process. George Bollenbacher provides some guidance on when and to whom MiFID II rules apply and highlights three trends that are likely to emerge as a result. In a previous article, I addressed some of MiFID’s… Read More »

MiFID 2 and MiFIR appear to offer inconsistent and sometimes contradictory definitions of third-country firms, creating regulatory uncertainty and forcing firms to ask some difficult questions about their business in Europe. As the MiFID “D-Day” gets ever closer, certain aspects of the rules and endless RTSs start to come into sharper focus. Among those is the role, and perhaps plight, of what MiFID calls “third-country firms.” MiFID defines this category… Read More »

Monday, October 19th, 2015 by GEORGE BOLLENBACHER Tucked away in Article 27 of MiFID 2 is a potentially disruptive requirement – the ‘Obligation to execute orders on terms most favorable to the client.’ Unfortunately, what constitutes best execution, and when the rules apply, aren’t clear. As a result, there are 5 tasks investment firms must tackle before MiFID 2 becomes effective at the end of 2016. Tucked away in Article… Read More »

Wednesday, October 7th, 2015 by GEORGE BOLLENBACHER The industrial world has entered a new economic era, and the transition has rendered much of monetary policy largely irrelevant. The Fed has pumped out multiple trillions of dollars since 2008, with no verifiable evidence that the flow had any commensurate impact on economic growth. And now that it is considering tightening monetary policy, we should expect significantly more unrest. While the current… Read More »

Last week, regulators released their joint report on the Oct. 15, 2014, Treasury Flash Crash. One of the hot topics of discussion has been the prominent role of “PTFs” in the report. So what is a PTF? TABB Group founder and CEO Larry Tabb and George Bollenbacher, partner, Capital Markets Advisors, examine the report, including the definition of a PTF, or a principal trading firm, and how they impact the… Read More »