How Mifid II’s second seismic shift is reshaping the trading landscape

Philip Yarrow, CEO of Winterflood Securities examines in the Financial Times how the seismic impacts of MiFID II are unearthing challenges on liquidity transparency and best execution delivery. The introduction of the reporting requirements of Regulatory Technical Standards 28 (RTS 28) means investment firms must demonstrate broker selection procedures and best execution policy as an indicator of liquidity offering. However, Philip argues the key question is whether investment firms can actually tap into deeper pools of liquidity, suggesting that retail investors and trading desks are two such sources of additional liquidity.