ESMA has recently published the MiFID II/MiFIR review report on algorithmic trading.
The Final Report concludes that no fundamental issues have emerged with respect to the MiFID II algorithmic trading regime which has overall delivered on its objectives. ESMA nevertheless makes in the report some recommendations which aim at both simplifying the regime and making it more efficient.
The report therefore includes some proposals to the European Commission on targeted Level 1 amendments.
The report also identifies issues which will be followed up by ESMA via amendments to ESMA technical standards or additional guidance on a number of topics.
The report also addresses recent market developments by including topics such as speedbumps and the sequencing between public vs. private transaction confirmation feed by trading venues.
This report will be submitted to the European Commission and is expected to be taken into consideration for further legislative proposals on the MiFID II regime (level 1).
Regarding Level 2 provisions, the amendments of existing technical standards discussed in the report will be subject to specific consultations to be published shortly.