Makor Securities London Ltd, an agency brokerage group trading cash equities, fixed income, FX, and derivative products, has become the latest venue to receive Organised Trading Facility (OTF) authorization from the UK’s Financial Conduct Authority (FCA).
Makor’s approval by the City regulator gives its clients greater flexibility to choose the type of venue and execution method that suits their needs. OTFs constitute any facility that aggregates buying and selling interests or orders related to financial instruments, focused on non-equities such as derivatives and cash bond markets.
“In addition to providing liquidity discovery and execution services across the listed and Over-the-Counter (‘OTC’) markets, Makor will additionally offer access to the Makor OTF. This ensures continuity of service, compliance with MiFID II regulations and provides a choice of execution protocols in line with client preferences,” it said.
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Makor expands to Switzerland
Makor’s new authorization will support the execution of intermediated and discretionary flow, while also enabling clients to discover new liquidity sources and trading opportunities.
Under MiFID II regulations, trading venues, approved reporting mechanisms, organized trading facilities, investment firms, and sell-side firms have a significant reporting obligation to both ESMA and their local regulatory bodies. In line with the legislation that came into effect last year, OTF operators are required to collect information about venue users and transactions.
Elsewhere, European investors were worried about being cut off from Britain’s financial markets because all the other financial centers in Europe are smaller in size. In turn, the UK’s financial services sector is struggling to find a way to preserve the existing flow of trading after the nation leaves the EU.
The latest FCA approval caps off an eventful year for Makor, which has been actively recalibrating its business to better meet shifting regulatory demands. Apart from MiFID II, Makor also expanded the scope of its activities in Switzerland and as a result, has appointed Sebastien Crouzet to build its Cross-Asset Services Desk.