MiFID II will require firms that undertake market making strategies on Equiduct to sign up to a market making agreement. This differs to the current arrangement with Equiduct whereby firms can request to become a Liquidity Provider.
Trading venues will need to be able monitor compliance with the market making agreements and schemes that they have in place. This monitoring requires the ability to flag market maker activity, which Equiduct already has the ability to do, to ensure compliance with the agreements.
Equiduct, as with other trading venues, will need to identify and detail what constitutes stressed market conditions and “exceptional circumstances”. These definitions will be included in our market making agreements and the details documented and published on this website. Equiduct have set up working groups to discuss and decide the parameters of these conditions and circumstances.
Equiduct’s Market Making agreements already meet the requirements for being fair and non-discriminatory. We are however, reviewing our agreements as part of the due diligence approach in our MiFID II implementation project.