RTS 37 of European Commission's Mifid II draft has suggested pre-trade credit risk checks for every trade
The European Securities
and Markets Authority could delay trade execution on European
derivatives exchanges by up to 60 seconds as a result of
proposals contained in the latest draft of Mifid II.
The proposals outlined
in RTS 37 of Mifid II require pre-trade credit risk checks for
every trade to ensure certainty of clearing.
The move has the
potential to increase trade execution times from milliseconds
to up to one minute, fundamentally altering the dynamics of the
exchange-traded derivatives market.
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