Here’s another quirk from the early days of MiFID II: algorithmic traders like Virtu Financial Inc. are deliberately opting not to use a pricing advantage.
Systematic internalizers, the new breed of lightly regulated trading venue ushered in by this year’s European regulatory overhaul, aren’t subject to MiFID’s “tick-size” regime governing the minimum increment for stock pricing. Traditional stock markets have feared this would give the venues run by Virtu and more than a dozen other companies an unfair leg up.
