Newsletter December 2013: Europe set for limits on dark pool trading

BRUSSELS – The European Commission has circulated a paper that supports calls from the European Council to impose limits on the proportion of equities that can be traded off-exchange. These proposals would cause a suspension of trading on so-called unlit venues or dark pools if their market share rose above two set caps. If approved, the proposals would enter force as part of the Markets in Financial Instruments Regulation (MiFIR), which is still being negotiated in trialogue between the Commission, Council and European Parliament. All three now appear willing to accept the caps proposal.