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Tabled as part of a consultation paper launched on 15 April, the European watchdog has asked participants how effective they believe the order protection rule is for guaranteeing the best price for clients/investor protection, speed of execution, level of execution fees, split of liquidity, interconnection between trading venues, efficiency of the price formation process, modernising trading protocols and trading.

Implemented as part of Reg NMS in 2005, the US order protection rule mandates that orders be executed on exchanges that show the best price. Orders are re-routed to other competing venues if it cannot be executed at what is considered the best price.

The European Commission’s consultation has asked participants for their assessment of EU infrastructure to cater for the rerouting of orders to venues offering the best price – as per the requirements of the rule. It has also asked respondents to note if they think the geographical positioning of venues would pose an issue, and what the necessary arrangements and costs could be.

Those responding are also invited to give their opinion on the effectiveness of best execution rules in Europe, requiring them to list whether the EU or the US framework is most effective for obtaining the best results for clients.

Brought in under Mifid II, the best execution obligation requires that firms take all necessary and reasonable steps to ensure the best result for an order.

The European Commission’s consultation touches on a wide range of market areas as part of its objective to gather stakeholder feedback on obstacles to market integration across the EU. When it comes to trading specifically, the paper has a heavy focus on market harmonisation, with many sections dedicated to the potential benefits and feasibility of creating more integrated markets in Europe.

Numerous questions relate to what respondents believe could be barriers to integration across the 27 member states and their markets. It also asks respondents to assess both direct execution and indirect execution of orders, as well as the various fees charged for connections to venues across member states.

The 375-question strong consultation also assesses several other market areas including dark trading levels.

The paper asks participants why they think dark trading is growing, whether that be regulation, liquidity fragmentation, order flow competition, technological developments, or the growth of ETFs and passive management. Participants are also prompted on their thoughts on reference price waiver is fit for purpose and asks them to assess the current criteria for reference price.

The return of VWAP crossing?

Notably, the consultation asks if trading venues should be allowed to use the negotiated price waiver to execute negotiated transactions that take place with the assistance of a system or trading protocol operated by the trading venue.

Read more – ESMA thwarts European trajectory crossing plans with last minute rule change

The consultation follows European regulators’ decision at the end of last year to bring an abrupt and unexpected end to a group of trading venue’s plans to launch trajectory crossing in the region with a last-minute rule change. Said venues had been planning to use the waiver as the basis for their models.

Featured in its final report on equity transparency, published in December, the European Securities Markets Authority (ESMA) added an additional line to its text surrounding the specific characteristics of negotiated transactions, preventing exchanges from using the model on their own behalf. The rule change put a stop to exchanges’ plans in Europe.

The decision has received significant hit back from several parties – namely the venues looking to launch these products in Europe.

However, Tuesday’s consultation suggests the European Commission could be open to reassessing.

24-hour trading, the consolidated tape and the close

The extension of market trading hours for equities has become a hot topic in the US in recent months. While a handful of technology providers have offered out of hours trading for several years now, the decision by several incumbent exchanges to begin exploring implementing an extension of trading hours suggests the theme is becoming mainstream in the US.

Europe, however, seems to tell a different story. A few years ago, European participants were petitioning for the shortening of market hours. As US venues apply to regulators for the lengthening of their trading day, their European peers have shown little to no sign of following suit.

The European Commission’s consultation released on Tuesday asks respondents how positive they deem extended trading hours/24-hour trading to be for the development and competitiveness of EU markets, also asking if it is “advantageous” or “risky”.

When it comes to the tape, the Commission has also asked participants opinions on several technical elements including how effective lifting the anonymity of the EBBO, the importance of expanding the depth of the EBBO displayed, and the speed at which core market data should be disseminated by the tape.

Centrally the European watchdog has asked whether systematic internalisers (SIs) should contribute to the tape and which amendments to their regulatory framework would be required to effectively include them as contributors of equity pre-trade data.

The consultation also explores bilateral trading levels, single market marker venues and ghost liquidity, as well as, closing auction activity, with several questions asking participants why they think the close has grown so much and what fees they are charged on competing venues.

Respondents have until 10 June to submit their feedback to the watchdog. Meanwhile, an online questionnaire through which participants can respond to the consultation will be available as of 22 April 2025.

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When asked what their greatest regulatory focus was for 2025 during a live poll, almost half (48%) of those present in the room responded that it was the impacts on price formation in public markets due to increasing bilateral trading. 

In answer, the panellists highlighted the strong correlation between this point and increased inclusion into markets, including retail. The notion of a reversion to more ‘traditional’ methods is perhaps unsurprising, but certainly one which must be addressed, agreed speakers.

One explained: “It’s certainly true that markets are effective when there’s a choice of trading functionalities out there and we’re all conscious of the fact that when you change one aspect of market structure, you need to be mindful of the impact on the structure as a whole.”

Read more: Liquidity, it’s a two-way street

The experts further emphasised that discussions focused on the future of the optionality of systematic internalisers (SI) across the region will also remain key.

Of course, banks have continually offered systematic bilateral liquidity, however the potential for increased adoption is stirring as this landscape continues to evolve.

From the retail perspective

Following on from the conversation on the rise of bilateral trading, panellists were questioned on how retail investors will also be able to get involved in that and what should be front of mind as this continues to play out into the future.

What remains key here, is the notion of choice, coupled with confidence in the markets. As one speaker explained: “Building that confidence is not the job of regulators only, it’s the job of everybody […] what we see is people not understanding markets, if you look at the way markets have been designed, they’ve been designed for well behaving companies that publish quarterly earnings and so on with steady growth.” 

Addressing about the issue of inclusion as regards the retail side, the experts highlighted the importance of protecting investors and the role of education in this.

“Looking at the idea of the education of retail investors, it goes back to this whole debate around looking at the market and actually being able to trust what you see in terms of the data, the reporting.” 

At the same time, not strangling innovation with over-regulation was also brought to the fore.

Read more: The untapped potential of the UK retail market

“It’s important to remember that this does take time. You cannot say ‘okay, we will develop education and tomorrow we will have masses of people investing,’ it requires a holistic view and several things being done at the same time […] at the same time not over protecting is important.”

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ADX’s new market infrastructure was announced on 24 February, as part of a wider push to attract more investments into the UAE, as well as strengthening Abi Dhabi’s position as an investment hub and financial centre.  

“With the launch of ADX Group, we are not just building a financial marketplace; we are shaping the future of investment in Abu Dhabi and contributing to long-term economic development of the UAE and in the region,” said H.E Ghannam Al Mazrouei, chairman of the ADX Group. 

“More regional and global investors will benefit from seamless access to the ADX platform to unlock opportunities for expansion in the emirate’s thriving sectors and industries.” 

The ADX Group’s new business model aims to transform and future-proof its capital market.  

With new post-trade capabilities and services, an enhanced trading system, and new clearing and settlement platforms, the Group aims to unlock more investment opportunities and deepen market liquidity through the provision of improved access to market activities and growth sectors in Abu Dhabi.  

These improvements will allow the ADX Group to introduce more diverse product offerings and services to address changing demands of institutional and retail investors, issuers and businesses in the UAE and the wider Middle East region. 

As part of this transformation, ADX has entered a strategic technology partnership with Nasdaq to deliver a Core Platform Upgrade (CPU), which will introduce improved capabilities across trading, clearing, and post-trade services.  

All enhancements further boost ADX’s operational readiness, attract new types of new market participants, and increase trading activities, according to the firm.  

Elsewhere, its new post-trade subsidiaries, AD Clear and AD CSD, support the securities market by providing essential clearing, settlement, depository, and risk management services for both local and international investors.   

These services are expected to help improve market efficiency and facilitate the flow of capital to further economic growth. 

“The ADX Group is leading the way in using new technology to expand and strengthen Abu Dhabi’s investment landscape,” said Abdulla Salem Alnuaimi, group chief executive officer at ADX.  

“Our enhanced trading system aims to increase resilience and performance by 400%, reinforcing the emirate’s position as a global financial hub.” 

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Asian markets face a pivotal year in 2025, shaped by three key dynamics: the continuing accumulation and deployment of wealth, uncertain geopolitical conditions including potential impacts from US policy shifts which may lead to volatility, and ongoing structural reforms across Asia’s diverse capital markets. 

Asia remains a very dynamic region. While the regulatory landscape has been challenging in countries like China, South Korea and India, we are seeing tremendous wealth creation in markets such as India and Southeast Asia. From a capital markets perspective, Japan has offered the region valuable lessons in how to stimulate market activity through a package of measures and corporate governance reforms. Elsewhere in Asia, the capital markets emergence from a decade-long low interest rate environment has been slower. We will be looking closely at China, Hong Kong and Singapore as they find means to stimulate growth and investment in public markets.   

As a growing Asian quantitative asset manager, our focus will be on Australia, India and Japan. We believe that caution and volatility will likely be the significant themes of 2025, but opportunities will be available for those who can navigate Asia’s intricacies.   

Jon Hodges, head of trading and asset services APAC, FIS     

The capital markets landscape is poised for significant shifts in 2025, driven by evolving investment strategies, regulatory developments, and the push for operational efficiencies. Across APAC, the convergence of buy- and sell-side demands is reshaping how market participants approach technology and service integration.     

Private markets continue to be a standout growth area, with robust interest in Southeast Asia and Australia as the ongoing shift in capital provision from banks to non-banks continues. The increasing sophistication of private capital strategies reflects a broader trend toward democratising investments and enhancing access to diverse asset classes, including the fast-growing private credit market. Elsewhere, Japan is fostering growth in its asset management sector by encouraging individual savings and operational reforms among listed companies. 

Operational scalability remains a priority, with institutions exploring business process outsourcing to meet cost-efficiency goals while navigating regulatory complexities. Around 75% of leaders from UK and Singapore view outsourced managed services as having a high impact on cost reduction, according to FIS’s 2024 Global Innovation Research. Meanwhile, technology-driven solutions, such as advanced securities matching platforms and portfolio management systems, are helping organisations streamline workflows and improve market connectivity.    

As APAC’s capital markets evolve, the interplay between local nuances and global influences will continue to shape the competitive landscape. Success will depend on aligning technological advancements with client needs while adapting to the unique regulatory and market structures of the region. 

Lee Bartholomew, global head of FIC ETD product design, Eurex     

The outlook for European FIC volatility in 2025 depends on several factors that may cool or fuel further uncertainty. European rates volatility is set for further benign periods as rate cut cycles in the US and Europe reach their lows by mid-2025. This assertion requires a continued return of inflation to central bank targets and economies growing at on consensus paces with low and stable unemployment.    

Potentially rising government debts, however, present upside risk for rates volatility, be it due to US tax cut extensions or infrastructure investments from various European sovereign issuers paired with growing political uncertainty there with early elections in Germany and most likely in France limiting effective policies.

Against this backdrop, I consider that credit is going to be an interesting space. We expect macro factors to be supportive of credit, and therefore, expect to see an acceleration in the use of credit derivatives.   

Kerim Acanal, global head of emerging markets, Tradeweb    

Emerging markets investors will have to navigate several uncertainties next year, from the threat of new trade tariffs under the Donald Trump presidency to mounting inflationary pressures, and questions around the Federal Reserve’s interest rate cutting path. There is also increasing geopolitical risk, such as the ongoing Russia and Ukraine conflict and the reignited Syria crisis. It is clear that financial markets will be anything but quiet next year, and it will be interesting to see the impact that these events will have on emerging markets participants.

However, despite the many unknowns, I would expect one theme to remain consistent, namely the role electronic trading can play in ensuring efficient risk transfer during times of heightened market stress. Being able to offer emerging markets investors a complete electronic trading toolkit covering all asset classes will be key, and at Tradeweb our goal is to continue to develop a host of trading protocols, functionalities and products that make trading more efficient and streamlined, while helping to further electronify our core emerging markets regions. 

Duncan Higgins, chief executive officer, Sustainable Trading 

In 2025, we predict a turning point for European capital markets: a move away from siloed thinking and towards greater collaboration to address shared challenges too. Historically, market participants have operated with a divisive mindset, prioritising rivalry over cooperation.  

Yet, with subdued trading volumes, geopolitical divides following Brexit, and growing global competition, the industry can no longer afford to remain as fragmented.  While various initiatives aim to improve markets, progress has been slow, hindered by these entrenched divisions. However, firms are beginning to recognise that collective action may be the only viable path to building more effective and resilient markets. By setting aside differences, market participants can work together to foster a stronger, more capable ecosystem; a better, more vibrant market benefits everyone. 

Embracing a more collegiate approach doesn’t mean abandoning competition, firms can still differentiate. But in areas where cooperation unlocks mutual benefits, 2025 could be the year joint efforts take centre stage.  

This shift mirrors the spirit of collective action already seen in other areas, such as sustainability, where progress relies on shared commitment to change. By working together, those active in European markets can secure a stronger future, fostering growth and resilience for the benefit of all stakeholders. 

The post The TRADE predictions series 2025: A macro outlook on the markets – part two appeared first on The TRADE.

The coming change in US administration will see a front-loaded agenda of policy change in 2025. The reaction function of policy makers will be tested, with multi-lateral negotiations to be expected between the US and its trading partners – with uncertain results and even incongruent outcomes relative to current expectations. Adding to this, varying enthusiasm by central bankers and Treasury officials to lean on monetary and fiscal policy levers to stabilise growth, will see policy divergence and more importantly, policy miscalculation as the central theme over 2025. 

The likely outcome will be increasing volatility in the FX, equity, local currency, and commodity markets which are impacted by these divergences. What this will likely precipitate is global central banks needing to cut more than they had initially perceived necessary, to provide some tailwinds to de-stabilising growth dynamics, and steepening rate curves to incentivise duration buyers – ironically keeping implied rate volatility suppressed in the process.  

The increasing degree of competing narratives will leave no room for complacency for global clients in their risk management activity. The silver lining is that market uncertainty can often create opportunities in other geographies, leading organisations to consider where else to focus their investments and time. The potential unleashing of investment appetite with lower rates, or resolution of geopolitical conflict and trade issues may lead to significant business opportunity.   

Vincent Chailley, chief investment officer, H2O AM Group   

The United States economy was turbocharged by a highly supportive monetary policy up until 2022, followed by a massive fiscal boost in 2023 and 2024 which has been the main driver of US exceptionalism. Consequently, the new Trump administration will inherit a financial and economic landscape with much less leverage potential than in 2017, which followed a period of fiscal restraint.   

Within this context, key growth drivers — such as government spending, post-Covid savings, immigration, real salary growth — are now beginning to fade. At the same time, elevated valuations are reducing the resilience of US assets, leaving it increasingly vulnerable to shocks. 

US exceptionalism could be facing a return to reality, driven by fiscal constraints, assets underperformance driven by too concentrated positions and the delayed effects of supply-side measures. 

The US dollar, interest rates, and equities cannot all rise concurrently. At least one should yield, depending on the policy priorities of the Trump administration. Risks of policy missteps and heightened uncertainty are amplifying market sensitivity. 

For 2025, the growing uncertainty surrounding the current largely positive consensus market scenario suggests a need to shift from a conviction-based investment style to a strategy that prioritises robust portfolio construction. 

Kaisha Schnoll, assistant vice president, STP Investment Services 
   
In 2025, emerging markets are poised to play an increasingly significant role in global trading. As the world shifts toward digital and automated trading systems, emerging markets will benefit from enhanced access to international capital, driven by technological advancements and the growing integration of global financial systems. This evolution offers new investment opportunities, particularly in sectors such as technology, energy, and infrastructure. 

However, the rise of emerging markets trading brings its own set of challenges. Regulatory environments are often less developed, which may pose risks for international investors. Additionally, volatility in local currencies, political instability, and liquidity constraints could dampen investor confidence. Emerging markets may also face challenges in adopting the fast-paced, high-tech trading strategies common in developed markets, making infrastructure upgrades and regulatory reforms crucial.   

Despite these risks, the potential for high returns continues to attract investors, particularly in regions like Asia, Latin America, and Africa. As countries improve governance, market transparency, and financial sector development, the attractiveness of emerging markets will continue to grow. By 2025, the focus will be on balancing growth with risk management, making emerging markets a key area of interest for global traders and investors alike. 

Jennifer Keser, head of market structure and regulation, Europe and Asia, Tradeweb 

We are leaving behind a year that saw no shortage of major political shifts globally, with a new Labour Government in the UK, Republican Donald Trump winning the US presidential election, the collapse in government in both France and Germany, and an institutional changeover in the European parliamentary elections. One thing for sure is that instability is everywhere, even in the democratic and developed markets that are usually considered to be most ‘solid’. The regulatory impact of these changeovers in government and how they will drive the regulatory agenda in key markets around the world will undoubtedly be front-of-mind for market participants.

EU capital markets have faced criticism in recent years for being fragmentated and underutilised and there is a growing urgency from markets to ‘upscale’ Europe’s competitiveness. Efficient and resilient fixed income markets are integral for investors, so it is crucial that there is a clear focus next year on improving market harmonisation, consolidation and resiliency. With the implementation of the review of Mifid II/R, the shortening of trade settlement cycles to T+1 in Europe and the UK, and the ongoing discussions around a bond and equity consolidated tape provider, both the public and private sector have their work cut out for them.

The post The TRADE predictions series 2025: A macro outlook on the markets appeared first on The TRADE.

By leveraging Broadridge’s Securities Finance and Collateral Management (SFCM) solution, FAB will be able to bolster its coverage of global fixed income and equities markets.

The development comes as part of the bank’s drive to expand securities lending in the UAE and wider Middle East.

“This collaboration caters for the growing demand for securities lending and borrowing within the Middle East and is aligned both with local regulatory needs and with international best practices,” said Darren Crowther, head of securities finance and collateral management at Broadridge. 

Broadridge’s provision of its SFCM platform — the first AWS SaaS deployment in the region — demonstrates a renewed focus in the Middle East and indicates readiness to support FAB’s strategic goals, the firm said in a statement.

As FAB navigates the evolving landscape of securities borrowing and lending regulations in the region’s markets.

The collaboration is also expected to yield new opportunities and efficiencies for FAB that will benefit clients across the globe – particularly as it navigates the evolving landscape of securities borrowing and lending regulations in the region’s markets.

The post Broadridge tapped by First Abu Dhabi Bank to build global agency securities finance business appeared first on The TRADE.

The new office, which is three times larger than its existing facility, will bring the company closer to its clients, with the aim to better deliver services across the Middle East and North Africa (MENA) region.

The office is located in Central Park Towers and will act as a strategic hub for TP ICAP’s business operations across the region. In addition, the new location will bring together key brands under the Group umbrella, including ICAP, Tullett Prebon, PVM, Parameta Solutions, and COEX.

The expansion will enable clients to access TP ICAP’s market data and broking solutions, backed by a strong local presence.

The regional hub was developed to address UAE-based client needs and other key marketplaces in region, alongside being positioned to serve important Asian markets.

“At TP ICAP we put our clients first, being closer to them, understanding their needs and the landscape in which they operate, enables us to anticipate how we can best serve them in the future,” said Christophe Moser, managing director and head of Dubai.

“This expansion in the DIFC, one of the world’s premier and fastest growing financial hubs, underscores the Group’s vision of delivering industry-leading liquidity and data solutions, broadening its market reach in a pivotal and high-growth region.”

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This year, The TRADE is proud to be celebrating its twentieth anniversary and to mark the momentous occasion we are excited to be launching the first North American iteration of our famous Leaders in Trading awards. 

The shortlists for the Leaders in Trading New York Buy-Side Awards have been produced following a slew of nominations from key industry players across North America, recognising whom amongst their peers stand out as the most deserving of these recognitions. 

Congratulations to all those nominated across the five categories! The winners will be announced at the Leaders in Trading New York glittering awards night to be held at Chelsea Piers in New York City on 19 November.

“The Buy-Side Awards are the highlight of Leaders in Trading,” said The TRADE’s editor Annabel Smith. “We couldn’t be more excited to be bringing the magic of Leaders in Trading over to the US for the first time in The TRADE’s 20-year history.” 

The categories for the Buy-Side Awards include the coveted Trader of the Year – Long Only, Trader of the Year – Hedge Fund,  the Trading Desk of the Year Awards, and Buy-Side Market Structure Expert of the Year. 

Also set to be recognised on the night are this year’s Rising Stars of Trading and Execution, North America – to be announced in due course. 

Many congratulations to all the shortlisted individuals and teams, it will be a night to remember! 

Trader of the Year – Long Only 

Megan Davidson, BlackRock

Chris Fiorito, River Road Asset Management

Stephanie Fraser, Baillie Gifford 

Jay Peters, Artisan Partners 

Jason Siegendorf, Harris | Oakmark

Trader of the Year – Hedge Fund

David Alfred, Conversant Capital

Adam Nemser, Southpoint Capital

Keith Roscoe, Jericho Capital Asset Management

Craig Tscherne, Verition Fund Management

Renato Zimberknopf, Fourth Sail Capital

Trading Desk of the Year

Balyasny Asset Management 

BlackRock 

Millennium

Thompson, Siegel & Walmsley LLC

Wellington Management  

Fixed Income Trading Desk of the Year 

Invesco

Janus Henderson

Legal & General Investment Management (LGIM)

PIMCO 

T. Rowe Price

Buy-Side Market Structure Expert of the Year

Simon Cohen, Morgan Stanley Investment Management

Dan Eisemann, MFS Investment Management

Melissa Hinmon, Glenmede Investment Management

Mett Kinack, T. Rowe Price

Ed McBride, Centiva Management

Key contacts at The TRADE 

Please contact Patrick Wright at patrick.wright@thetradenews.com for sponsorship opportunities or to book a table for Leaders in Trading New York.

If you are a member of the buy-side community and would like information on attending please contact Karen Delahoy at karen.delahoy@thetradenews.com or Annabel Smith at annabel.smith@thetradenews.com.

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