Market Regulation

MARKET-WIDE CIRCUIT BREAKERS

Optiver believes that the Market-wide Circuit Breakers triggered in March 2020 functioned well and contributed toward market stability. There is, however, room for improvement, especially during the pre-open / Extended Trading Hours, when coordinated rules do not apply in U.S. markets, which is why we propose the following enhancements. Click to read the full paper.

SHORT-SELLING BANS

In this paper, we look at the impact short-selling bans have on global financial markets and on end-investors. Short-selling bans come at a cost to the market and to investors. Instead, it is more important to focus on measures proven to support the healthy functioning of markets (such as liquidity protection and coordinated circuit breakers) while also addressing the underlying economic issues driving market volatility.

Investment firms review

In this paper, we first briefly describe what it means to be a market maker and how market makers differ from most investment firms. We subsequently focus on how these characteristics should be taken into consideration when drafting the individual Level 2 measures.

CCP RECOVERY and RESOLUTION

CCPs perform a critical role in financial markets. We welcome the legislative proposal by the European Commission to ensure that CCPs and national authorities have the means to act decisively when a CCP falls into a crisis scenario. The proposed rules will contribute to the aim of ensuring that CCPs’ critical functions are preserved while maintaining financial stability.

Review of MiFID II

As one of the main pieces of the post-crisis reform agenda impacting the financial services sector, MiFID II lays the foundation for more stable and liquid markets in Europe. In order to roll out its potential, further strengthen investor protection and create fully efficient, resilient and transparent European financial markets, we believe that some lessons need to be drawn, 18 months after the go-live of MiFID II requirements.