Risk.Net has an interesting article today (extract below), quoting MEP Kay Swinburne, talking about modifying Mifid to accommodate systematic internaliser (SI), which has implications for Single Dealer Platforms.
“We think we can make the systematic internaliser (SI) category work for single-dealer platforms,” she says.
“We thought this was the better way – rather than amend the multilateral element of OTFs, we will try to adapt the SIs.”
SIs allow trades to be executed against the owner’s proprietary capital, and are not required to involve multiple market-makers – but they are not recognised by Mifid as a platform on which standardised OTC derivatives can be executed. Swinburne hopes to change that.