The London Metal Exchange has launched a working group to develop a solution for the pre-trade transparency regulations in Europe's Markets in Financial Instruments Directive (MiFID II), chief executive officer Matthew Chamberlain has said.
In a notice released on Tuesday May 28, Chamberlain said that the exchange will not challenge the pre-trade transparency rules that threaten the phone-trading market. "Further lobbying or ultimate non-compliance is not... an option for the LME," he said."The LME considered factors including the genuine risk of enforcement action by [UK regulator the Financial Conduct Authority (FCA)] unless further steps are taken, and that most exchanges in Europe are also working on a path to pre-trade transparency compliance." he added.Pre-trade transparency is intended to provide market participants with a real-time broadcast of...