ICMA has responded to ESMA’s consultation on trading venue perimeter
4 May 2022 ICMA has clarified its member’s interpretation of the definition of multilateral system. The response also covers the key characteristics (automated and non-automated) required in order for an entity to be authorised or not authorised as a trading venue. In addition, ICMA has made clear the regulatory boundaries for communication tools, and when they may or may not be required to be authorised as trading venues. Finally, ICMA explains governance of the execution is crucial when assessing whether activities are multi-lateral or bi-lateral. ICMA’s response is based on buy-side, sell-side, trading venue and technology provider views. While there was a clear majority from all taskforce members, a limited few trading venues disagreed with the overall response.