JPMorgan Says Too Much MiFID II Transparency Might Hurt Market Liquidity

As MiFID II approaches – and the majority of bulge bracket research providers have decided to eat the cost of research rather than charge for it – the looming concern is market liquidity amid MiFID II transparency.

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MiFID II transparency: “Transparency is not unequivocally good for market liquidity”

A primary goal of MiFID II is to bring standardization, transparency and best execution to the marketplace. Banks operating in Europe are required to re-register as “systematic internalizes,” requiring them to publish firm quotes as broker crossing networks are banned and dark pools will be limited.

Transparency has always been a key feature of well-functioning markets. But JPMorgan’s Nikolaos Panigirtzoglou and his...