Mifid II: how to provide non-EU clients with DEA

  • Brokers on some EU exchanges have been forced to restructure relationships around controversial Esma guidance on direct electronic access;
  • If read literally, the Q&A prevents any intermediary that’s not regulated in the EU from providing any firm with DEA on an EU exchange;
  • That’s making EU exchanges far less appealing to a significant amount of prop trading business that could look elsewhere;
  • In the meantime brokers have opted to restructure client relationships, but lament the lack of clarity and consistency, with different member states taking different approaches.

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