Vedder Thinking | News Sam Tyfield Comments on the Status of Non-EU Trading Firms Under MiFID II Regulations in Futures & Options World Article
February 28, 2017
Sam Tyfield, a Partner in Vedder Price’s London office and member of the firm’s Finance & Transactions and Investment Services groups was, recently quoted in the Futures & Options World (FOW) article, “Non-EU Traders Unclear Over Mifid Status – Panel.”
The article provides a recap of the recent FOW Derivatives Israel conference, highlighting one key topic in particular: the unclear status of non-European prop trading firms under the impending MiFID II regulation. While the MiFID II financial reform will be enacted in less than a year, the legislation fails to comment on the status of non-European prop traders trading remotely into Europe or provide any concrete rules or regulations for these firms to follow once the new laws are enacted. And while the status of non-European firms having access to European electronic trading has been a growing concern over the past few years, the issue was at the forefront of discussion at this year’s conference, specifically for Israeli prop trading firms.
Mr. Tyfield weighed in on the issue stating, “If a prop firm is established in the European Union, a member of a European trading venue or has direct electronic access to a trading venue, then they will have to be authorised and regulated in the European Union.”
Mr. Tyfield went on to add, “The question for Israeli firms is whether they have an establishment in the European Union? If you have a server that is co-located with a broker in the EU, is that ‘an establishment’? In terms of tax, the answer is yes but, as far as regulation goes, the closest I have got to an answer from the European Securities and Markets Authority (ESMA), Parliament or the Commission is: ‘We want a level playing field,’ which to my mind means that they think ‘Yes.’”
To read more of Mr. Tyfield’s commentary, as well as the article in its entirety, click here (login credentials may be required).