Dark-Pool Clampdown Seen Ensnaring 74% of European Equities
- MiFID rules capping dark-pool trading will affect funds: study
- Limits impacted 94% of FTSE 100 stocks, Rosenblatt found
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If fund managers want to keep trading in European dark pools, they will need a big overhaul of their practices before new rules kick in next year.
The MiFID II rules that come into force in January intend to cap trading on dark pools, with the intention of forcing more trading onto public, or lit, exchanges. An analysis by Rosenblatt Securities Inc. found that 74 percent of the continent’s biggest stocks would have breached the caps over a year-long study period. In the U.K.’s FTSE 100 Index, 94 percent of stocks triggered the caps.